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Economics - - (+6|-0)
Higher prices for gas, groceries and flights will likely outlast the Iran war(apnews.com)
21 commentsbyDrewski
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[-]P-38lightning3(+3|0)

Gas is down nearly $.50 a gallon where I live from just a couple of weeks ago.
So much for that theory.

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[-]Drewski5(+5|0)

That's good, but gas and groceries are still up since the war began. The fertilizer shortages are affecting food production and 60% of U.S. farmers say their finances are getting worse. Even if the Strait of Hormuz is opened today, the global effects will be felt for some time to come.

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[-]RickSanchez2(+2|0)

Greedflation.

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[-]x0x72(+2|0)

You know greed existed both before and after the war. If greed is what is causing inflation then why weren't prices higher then? Why don't they charge $1Mil for a bottle of water? Greed is constant. The factors of the game are what change and makes prices go up or down.

The other reason why these numbers won't go back is because of AI. We have power inferstructure pushed to its limits in many parts of the country because of the increased demand. If that stressed system increases the opportunity costs anywhere in the country, it raises prices everywhere in the country. You can't have a bottlenecked system without prices going up.

The war was also a chance to break from the pre-war sticky prices and re-price energy for a post-AI world.

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[-]newJiminy2(+2|0)

"The war was also a chance to break from the pre-war sticky prices and re-price energy for a post-AI world."

The pandemic great reset was done so restaurants and grocery stores didn't have to be open 24/7 anymore. They didn't do it on their own cuz of competition but they all agree after the pandemic, notice that's only long lasting change. Lowering hours was "sticky" like prices you mention.

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[-]RickSanchez2(+2|0)

I am sure that AI Data Centers are a factor. But greed has always been around: https://youtu.be/aBsrQ0n90MI

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[-]x0x71(+1|0)

Right, which is why it isn't a factor in any kind of delta.

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[-]Zapped1(+1|0)

Pricing is not only about supply and demand, but also about what people will pay before they quit buying. Once prices go up, they usually don't come back down unless people stop buying or competition enters and sells at lower prices. Why lower prices when people are still buying your product or service?

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[-]x0x71(+1|0)

That's called demand. You hit the nail on the head for the technical definition of demand, the price at which people stop buying things.

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[-]pumpkin2(+2|0)

US and Global crude prices jumped from last year's low average of $60/barrel to $100+/barrel in March to the current $80/barrel, where it's expected to stay.

https://tradingeconomics.com/commodity/crude-oil

https://tradingeconomics.com/commodity/gasoline

The US impact on global markets has been severe, because oil companies have used the trend to price gouge, as we had seen when Russia invaded Ukraine. Russia and the US have done more to fuck up grandma's pension and heating bills than any other countries. To the US Executive Branch's credit, they've done exactly what Israel and Russia and others have told him to do, while the 99% will pay for an increase in the national debt from $18T to the current $39T, thanks mostly to 6 year of Republicans and a few Dems giving themselves $trillions in tax breaks, grants and other benefits.

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[-]P-38lightning0(+1|-1)

And still, the gas prices never got as high as they were during Biden's administration.

There was no war in the Middle East.

Joe Biden did that all by himself.

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[-]Zapped2(+2|0)

Don't forget that Biden sold off a lot of the strategic oil reserves after people started putting those "I did that!" stickers on the gasoline dispensers.

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[-]pumpkin1(+1|0)

"The Biden administration executed the largest-ever release of oil from the U.S. Strategic Petroleum Reserve (SPR) in 2022 to counter soaring fuel prices following Russia's invasion of Ukraine. They later repurchased roughly 2 billion worth of crude to refill the caverns before concluding their emergency replenishment in late 2024." https://www.energy.gov/articles/biden-harris-administration-makes-final-purchase-strategic-petroleum-reserve-secures-200 This is why the US economy was excellent at the end of Biden's term. $500 million in disinformation media in key swing states and voter machine fuckery (said Musk, his son, and Trump, repeatedly) elected the worst present in US history, a second time.

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[-]newJiminy1(0|0)

And prices still went up so maybe that was a lie

Economy was trash tho to be fair it's gotten worse with trump

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[-]JasonCarswell1(+1|0)

There was no war in the Middle East.

???

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[-]pumpkin1(+1|0)

Not by himself - but if you recall, The Biden Admin and a massive infrastructure bill passed by congress, along with many other improvements and investments over 4 years in the US resulted in natural inflation during 2 or 3 years, and by the 3rd quarter of the 4th year the US economy was better than it had been in 8 years, with the highest job growth in history under one president, a significant drop inflation and everyone enjoyed a booming economy once again. Meanwhile, a massive disinformation campaign and voting machine trickery in swing states elected for a second time the worst US present in history.

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[-]newJiminy2(+2|0)

So embarrassing WE LOST A WAR TO IRAN in three weeks

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[-]x0x73(+3|0)

We won at not doing whatever Israel wants. But we should hold our breath on this. America getting independent foreign policy is a good thing.

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[-]newJiminy2(+2|0)

lol trump only started it cuz Israel demanded.

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[-]JasonCarswell1(+1|0)

Independence as they join militaries?

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