economy

Gasoline seems to increase ten cents every day. Some pundits say crude will hit $2000 shortly which will place gas at nearly $8.00 per gallon. President Biden is blaming it on Putin but the reality is that decisions made in the last year in the USA have set the stage for a domestic energy shortfall – and therefore much of the resulting inflation. The Ukraine war has accelerated the process but an energy shortfall was baked into the cake.

The dynamics causing inflation are beginning to pile up.

• the pandemic caused a slow down in production;
• the strong economic recovery from the pandemic caused a short supply of products due to labor shortages and historically high demand exceeding supply; and,
• now the Ukraine war where major suppliers of commodities are sidelined.