Posted on 02/20/2023 9:18:38 AM PST by E. Pluribus Unum
This video interview segment was sent to me today along with a “wow, you were right” message. Apparently, the interview took place a few weeks ago (it’s new to me), but the admissions within it are quite remarkable.
The CNBC discussion surrounds inflation and the federal reserve raising interest rates. Minneapolis Fed President Neel Kashkari is talking about the jobs report, inflation and the intention of the federal reserve to continue raising interest rates until they achieve 2% inflation, regardless of consequence. Kashkari doesn’t hedge on the latter issue of consequence; he affirms with absolute guarantee the fed will keep raising rates until the economy shrinks enough such that 2% inflation is achieved. However, watch what happens when Joe Kernan takes that outlook and overlays “supply side” energy policy.
WATCH (10:22 prompted):
(Excerpt) Read more at theconservativetreehouse.com ...
First the federals (FED and DC politicians) inflate the economy, then when inflation becomes a political problem, the FED is stuck with the job of deflating the economy.
Result is the swings are getting wilder. Leave the economy alone. It will have natural cycle and is self correcting without interventions.
Real Americans grow the energy supply. Foreigners want to shrink it.
Nothing good ever comes from restricting energy supply. Historically creates despotic conditions and environmental destruction.
Everything the Left does has the same effect, a lousier life for Americans.
Humans are as natural to this planet as every other animal or plant. Everything we do is natural, just like every other living thing. Everything we use and manipulate is natural to this planet.
Nothing on earth is more natural than a human, but so-called environmentalists act like we are aliens.
They want everybody equally miserable.
Except for those at the top of the heap!
Our “Betters” will NEVER have to suffer the consequences of their actions.
Until, that is, we start fighting back!
Ping
Hmmmm. Maybe that’s why I just got an email from NVEnergy letting me know that my bill, using the averaging method we signed up for, will be increasing from $152/mth to $221/mth. Second increase in less than a year. Last year this time it was $131/mth. Thanks joementia and your friggin’ policies. Maybe I’ll shop around...........Oh! Solar is unaffordable for us and the ROI is probably past my “Use By Date”.
Perfect example of a pointy headed liberal.
No, they’re shrinking the economy by shrinking energy supplies by governmental actions, increased regulations, decreased public lands leases, etc.
They’re two very different things, and this guy is a lying propagandist, an idiot, or, most likely, both. He should have to live through a North Dakota Winter in a yurt with dung fires for heating and cooking. He might adjust his attitude on energy.
These creepy leftists can’t keep their story straight.
I thought they want all the worker bees to stop teleworking and instead commute into the big cities to support their office towers and woke city businesses.
... so in other words, he didn’t say any such thing. Conservative Treehouse sucks.
*****
This video interview segment was sent to me today along with a “wow, you were right” message. Apparently, the interview took place a few weeks ago (it’s new to me), but the admissions within it are quite remarkable.
The CNBC discussion surrounds inflation and the federal reserve raising interest rates. Minneapolis Fed President Neel Kashkari is talking about the jobs report, inflation and the intention of the federal reserve to continue raising interest rates until they achieve 2% inflation, regardless of consequence. Kashkari doesn’t hedge on the latter issue of consequence; he affirms with absolute guarantee the fed will keep raising rates until the economy shrinks enough such that 2% inflation is achieved. However, watch what happens when Joe Kernan takes that outlook and overlays “supply side” energy policy.
WATCH (10:22 prompted):
Fed's Kashkari: Fed has more work to do
The issue is quite simple, really. When additional oil, coal and natural gas development is blocked as an outcome of policy, energy prices jump massively. We are seeing 2022/2023 price increases in electricity, home heating, fuel, gasoline, natural gas and other total energy price outcomes in the 60%+ range.
As a direct outcome of energy policy, all of the downstream products and services have massive upward supply side price pressure. When the input prices are driving upward of 60%, the downstream prices increase accordingly. Farming costs, fertilizer, feeding, transportation costs, food at retail and wholesale, and just about every petroleum-based product, which is almost everything, increases in price accordingly.
If supply side energy price increases are pushing +60%, and the Fed will only accept a 2% inflation output result, the only method of achieving the desired result is to shrink energy demand. This is the goal of the current Fed monetary policy. In this interview Kashkari admits the dynamic for the first time in public.
Prior to this interview, the Fed was being too-cute-by-half as they talked about targeting the ‘demand side’ through increased rates. The demand they were targeting is the energy demand, but people (mostly in the financial and business world) were not willing to accept that Federal Reserve monetary policy would intentionally try to shrink the economy.
When overall energy price increases are driving upward of 60%, it is going to take a major amount of economic contraction to drop energy demand to meet the diminished energy supply. CTH has been warning about this ultimate objective for over two years. It’s a simple economic situation.
+60% price on the supply side, with a goal of +2% on the downstream demand side, equals a major amount of activity needing to be removed. Essentially energy use needs to drop by half.
You can put everyone in an electric car and still not even come close to dropping energy demand 50%. You cannot “energy efficient” your way to a 50% drop in demand; there just isn’t enough waste in the system, especially when people are already paying close attention to energy use because it costs so much.
This “transition to the new green economy” is a whole of society shift.
This “transition to the new green economy”, is a multi-generational shift.
The transition includes putting people in smaller houses, stopping their travel, stopping their purchasing of new goods, taking down entire industries and limiting human activity on a massive scale.
Something akin to the COVID-19 lockdown period would be needed, only this level of diminished economic activity would be permanent.
It makes you wonder if the COVID-19 lockdown was the test to see how much energy use would drop if everyone was stopped in place. And yes, during the COVID lockdowns, human activity did stop, economic activity did stop, and energy use did drop by the nearly amount we are talking about.
When you accept what Minneapolis Fed President Neel Kashkari is openly admitting in that interview segment, particularly as he is asked about the massive supply side costs and how that overlays, then you realize how prescient the image is below.
This image is the exact future you see flowing from the “radical transformation,” or what is also called “managing the transition“…
At the end of the transition, you have two social societies. One social system is a massive assembly of human activity all in close proximity. The alternative social system consists of those who do not wish to be jammed into Build Back Better cities yet forced to sustain themselves because the energy production and delivery resources in the larger geography have been stopped.
Now you know why I asked the question, “where would you live” over a decade ago.
PS. I’m not being snarky when I say:
(1) there are trillions at stake; and
(2) the management and control team behind Ron DeSantis belong to team “eat the bugs.”
“Nothing good ever comes from restricting energy supply. “
It’s good for the Elites that rule us
Where’s the part where Ron DeSantis fully supports the plan to shrink the economy in his first administration???
Where’s the part where Ron DeSantis fully supports the plan to shrink the economy in his first administration???/s
Why is his admission a revelation to you or anyone else? What do you think disinflation and deflation are?
Get you facts straight before you comment
Which is why the Democrats never talk about increasing electricity supplies. They never intended to do so
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