Reckless Biden Actions Leading U.S. Into Financial Crisis

m.knox

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Aug 20, 2003
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What a disgrace.

https://supermacro.substack.com/p/four-bucks-a-gallon-biden-creating?s=r

Acting impetuously to look tough is seldom good statecraft. But that is what Joe Biden has done, and he is leading us to an energy crisis, and perhaps one day, a financial crisis.

The price of oil has now spiked to around $110 a barrel, up from $66.50 on December 1. Americans are only beginning to feel the full extent of the pain this entails. The average price of a gallon of regular is now $3.73 across the USA, up nearly 20 cents in the past week and a full dollar from this point last year. Mid-grade is over $4 a gallon, and regular will soon follow as gasoline prices lag oil by about two weeks.

Higher oil and gasoline prices don’t just make it more expensive to fill up the car or pay the heating bill. They raise the cost of food and everything else that requires energy to produce.

Why is this happening? Have the Russians shut down the 10 million barrels of oil they produce each day, more than half of which they export? Have they blown up their own pipelines in Belarus that carry Russian crude to Europe, or the smaller-volume pipelines for crude that transit Ukraine? Have exports from North America or the Middle East been physically disrupted?

The answer to all of those questions is no. And yet the spike in cost is not just an added risk premium from speculators bidding up the price. Russian oil isn’t being delivered, at least not in the quantities it was before the war. While the Biden administration claims it designed sanctions on Russia not to impact oil, that is not reflected by reality. So broad and hasty are the restrictions, which include sanctions on major Russian banks and the country’s central bank, that oil traders and consumers are unwilling to accept Russian crude for fear of being targeted by the vengeful federal government.