02-17-2022, 10:10 PM
(02-17-2022, 09:27 PM)NATI BENGALS Wrote: Supply and demand.
You want to buy a gallon of gas. Or turn on your furnace.
The #2 supplier in the world will no longer sell to you since you are at war with them.
Demand remains the same, and supply drastically drops. What happens to the cost?
Haha, we're so far off that if this were a book you're explaining Chapter 1 while i'm trying to talk about Chapter 12....and so polite too. :)
Let's meet at Chapter 6.
Here are some handy facts:
1) The article is focused on the price of crude oil and it's impact on the US inflation rate...and only these two items.
2) It's not talking about natural gas, GDP, or actual oil production rates. (I'm not saying these don't matter, I'm saying it's not mentioned....though I for the life of me can't understand why you think GDP matters for this discussion. :) )
3) This article states the price of crude oil could be the reason the US inflation rate (why is based on CPI) increases by 2.8%
4) The article states a price increase from $90 to 110$ (a $20 dollar difference) will be the cause of this 2.8% increase
5) CPI is an aggregate of of various categories, none of which are crude oil. The price of crude oil can potentially impact aspects of these categories.
So with that said (since you seem to agree with the article): Why do you think a projected $20 dollar increase in the price of crude oil will cause a 2.8% increase in inflation? Is there a precedence for this?
Remember, the study isn't published so we're limited to what CNN provided in the article.
