US US Politics General - Discussion of President Biden and other politicians

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draggs said:
There are not going to be price controls imposed on gasoline lol
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We're following the trend toward that trajectory and it's the exact kind of retarded thing that the Biden administration would do. Weren't they "considering" tacking on another 25% tax on oil and gas drilling?
 
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>tfw no Asian gf said:
So I'm mostly a retard when it comes to economics but aren't price controls one of, if not the most counterproductive things you can do to try solving rising prices and inflation?
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Yes, it drives down supply hard, because it's no longer profitable to continue selling the thing in question, but the costs of getting the thing either continue rising or stay the same where they were before the price controls. I don't know how comparable it is, but the only thing I could think of that compares would be blockading the Strait of Hormuz.
 
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LUNEKO said:
The FED: QUICK PRINT MORE MONEY TO AVOID THE CONSEQUENCES OF PRINTING MORE MONEY, IT MIGHT BE STUPID ENOUGH TO WORK
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It makes sense. Bear with me, I'm not totally insane.

75 basis point rise this month and another 75 point next, this is baked in.

Housing collapse with over leveraged buyers facing a mountain of negative equity, baked in.

Zombie corporations (see Netflix etc) who've grown in a sea of cheap debt having to liquidate in the face of negative cash flow, baked in.

Target, Walmart and a whole bunch of other retailers have announced profit warnings with massive inventory build ups and resulting fire sales, baked in.

Why has crypto collapsed? Why isn't gold 5k an ounce? If we're facing hyperinflation that makes no sense but if a deflationary shock is around the corner it certainly does.

In a debt based monetary system debt destruction, which the Fed has announced as official policy, must lead to deflation. Deflation is absolute poison to the current consumer based service economy where everything is financialized.

They will be desperate to prevent mass social unrest, so you can expect more gibs to come.
 
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MarvinTheParanoidAndroid said:
We're following the trend toward that trajectory and it's the exact kind of retarded thing that the Biden administration would do. Weren't they "considering" tacking on another 25% tax on oil and gas drilling?
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The trend toward that trajectory?

That's a tautology lol

Okay let's see what happened the last time we tried gasoline price controls

-controls started November 1973
-oil was allocated to states based on their 1972 consumption
-by the last week of February 1974, 20% of gasoline stations in the United States had no gasoline

Shortages started immediately and the consequences were severe within 3 months. Polls showed that Americans hated Nixon more for the gas shortages than they did for Watergate. Republicans were absolutely BTFO in the 1974 elections from the combination of Watergate and gas shortages. Democrats gained 4 seats in the Senate, 49 in the House, and kicked 4 Republican governors out of office. Today Democrats are already in a deep fucking hole on the economy, sure add gas shortages to it

If the administration wishes to make the midterms not a red wave not a red tsunami but a red fucking wedding, go ahead and do price controls on gasoline. The GOP might just get to 60 seats in the Senate and a veto-proof majority in the House
 
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elite_club said:
Well if banks start failing because these retards who bought(and are still buying) """investment""" properties can't pay their loans due to variable rates, inflation and the job market making property maintenance downright expensive, wage stagnation that makes tenants unable to pay rent increases to cover that new overhead, and/or interest rates going up fucking over everyone who has a job for a company that doesn't really do anything other than service its(variable rate) debt, what happens to all the digital dollars that "exist" when the FDIC only guarantees $250k per account?
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*POOF*
 
draggs said:
If the administration wishes to make the midterms not a red wave not a red tsunami but a red fucking wedding, go ahead and do price controls on gasoline. The GOP might just get to 60 seats in the Senate and a veto-proof majority in the House
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How does that saying go?
Never interrupt your enemy while they're making a mistake.
Yeah i think the republicans can just sit that one down and watch the fireworks
 
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Rome's rightful successor said:
I maybe an economic retard to but what if instead of price control they stop printing money and manually raise the value dollar back up again to pre-federal reserve al la 1912 levels? Would that work?
How would you deflate the economy?
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So just before the explanation, they actually are doing this. Well, not really. The Federal Reserve is slowing the rate at which it prints more money. But in their minds, that's doing what you say.

But anyway, the way the money the Fed "prints" makes its way into the economy is that they lend it out to banks who then in turn lend it out to Blackrock companies and people. Thus there's more money, the economy seems lively because there's lots of money to spend and then inflation happens. You probably have the rough understanding of this but I needed to explain the precise mechanism because it's needed to understand how the Fed reduces the amount of money. See, they can't just go out and take the money back from people. How they do it is they raise the interest rate on the money that they lent out. That's what the Interest Rate is. When it goes up, the banks that they lent it to have to pay back the money they borrowed from the Fed and the interest on top of that. Higher Interest rates, faster the money is reduced (because the longer the bank holds onto it, the more it costs them).

So basically, to do what you say means to increase interest rates. What happens when you raise interest rates? Well, mortgages which are linked to that interest rate goes up, fixed rates are harder to get, etc. Plus anything else linked to that interest rate and the general cost of borrowing. So bump the Interest Rate and people start losing homes, jobs, etc. Furthermore, the higher the interest rates, the more difficult it is for the US govt. to pay its loans. Remember that the USA is >$23trn in debt. If the interest rate goes up, so do the repayments.

So it's not a retarded question, you're fine. But basically doing so has nasty side-effects. I believe the technical term for the current situation is "rock and a hard place". Successive US govts have been living off cheap money for a long time, now. Sooner or later something is going to break. Maybe already has - effects on this scale take a while to properly understand.

EDIT: @Flan Handler 's explanation of "economic methadone clinic" is just as good as mine and will probably stay with you longer! :)
 
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>tfw no Asian gf said:
So I'm mostly a retard when it comes to economics but aren't price controls one of, if not the most counterproductive things you can do to try solving rising prices and inflation?

If they really do it then that will confirm my worst fears, that the world at large is ruled by actual retards who think that reality itself can bend to their will just so they can put in place their autistic agenda, they are evil for sure but also mentally retarded and I don't know if that's better or worse than being ruled over by just plain evil machiavelian schemers.
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See, the thing is that implementing price controls is an easy way for politicians to be able to point at something and say "look, I'm helping!". Everyone agreed that rent control was a terrible, counterproductive way to deal with rental prices skyrocketing due to housing shortages, to the point that many states had laws forbidding municipalities from creating rent controls. Now, a bunch of states have state-level rent control policies, including ones that previously forbade it.
 
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