Biden Caused Worldwide Inflation

Joe Biden singlehandedly caused out-of-control inflation worldwide and sent the United States into a recession. His actions and rhetoric were the catalysts to tumble global markets. Never in our history has a United States President caused such turmoil resulting in a loss of this many trillions of dollars. He didn’t just ruin the U.S. economy, Biden caused worldwide inflation.

Life savings, retirements, small businesses, and investments were significantly drained. New home construction is now crippled, existing home sales have plummeted, and interest rates are jumping every quarter. Current 30-year mortgage interest rates are at a 15-year high and are still climbing. Estimates now show a staggering 64% of all Americans are living paycheck to paycheck.  Senior citizens are having to choose between prescriptions and food on the table.

In 2013, the United States became the world’s top petroleum products producer in the world. Petroleum products include crude oil, natural gas, and coal, which are in abundant supply in the US. In 2018, under President Trump, the United States became the top producer of crude oil and by 2019 established itself as energy independent. 

Crude Oil is Needed For More Than Fuel

Most people look at crude oil as being refined to gasoline for their cars, fuel oil to heat their homes, and diesel fuel for semi-trucks.  Only 46% of crude oil goes for fuel, the remaining 54% goes to other products such as:

• Medicines – found in almost all over-the-counter meds
• Cleaning products
• Cosmetics – makeup, perfumes, shampoos, etc.
• Food preservatives, milk cartons, water bottles, etc.
• Plastics – 4-5% of all petroleum products
• Synthetic rubber – shoes, tires, wet suits, gloves, etc.
• Asphalt
• Ink
• Insecticides
• Car bodies
• Refrigerant
• Telephones and cellphones
• Hearing aids and eyeglasses
• Bandages and hospital supplies

Fossil fuels including coal, natural gas, and crude oil are the #1 energy source worldwide for generating power, manufacturing processes, and transportation.

Everyone is touched every day by petroleum products, and they make our lives better and more efficient.

Petroleum products are considered commodities and are traded on a Commodity Market individually as a product that will be refined into a finished product. Crude oil, natural gas, and coal are examples of energy products traded every day on the Commodity Market.

Commodities are considered risky investments by traders due to the uncertainties of the weather, disasters, and world events such as war and pandemics. Prices shift constantly as supply and demand change worldwide or the opinion that the supply and demand may change. As the demand increases so increases the price, if the supply increases over demand the price goes down.

So let us look at what happened and what the consequences were. I’m going to use the historical data per barrel of one of the most traded crude oil commodities, West Texas Intermediate (WTI), to illustrate.

During Joe Biden’s campaign and after his inauguration, the rhetoric and executive orders have been to end the production and use of fossil fuels.  Markets react to those statements and actions. 

During President Trump’s time in office stimulating the economy, he was able to instill public confidence and increase production, thereby reducing the price of crude by almost 41%. Within days of hearing Joe Biden won the election, the price jumped up almost 10%. The price jumped up an additional 28% when he canceled the Keystone Pipeline project. Over the next year, Biden continued his rhetoric with the New Green Deal, promising to end fossil fuels in the United States. The week before Putin invades Ukraine the price has now jumped an additional 72%. The day after Putin invades Ukraine the price jumps a mere 2/10 of 1%. The prices since then have fluctuated from a high of $111.84 on June 29th, to today’s price hovering around $76.00. 

Now let’s compare the WTI price data to the chart below.  

As the chart shows, there is a direct correlation between the price of oil and the inflation rate. Whether or not the actual oil supply increased or decreased was irrelevant, the Market reacted to Biden’s words and actions. The United States was the largest supplier of crude oil in the world, and the President of the United States came out saying he was going to end it. The world reacted thinking the supply would be curtailed from the United States and they responded, by raising the price. Biden caused worldwide inflation and blamed everyone but himself.

After the Commodities Market raised the price, it was a trickle-down effect on the consumer – us! The price at the pump rose, doubling for a while before demand dropped and the markets caught up. Remember, the Commodities Market is worldwide, it affects everyone around the world. 

Everything we produce and consume has some sort of transportation cost. Getting to work requires fuel, electricity in our homes requires energy, and the farmer planting crops uses energy.  Everything in our lives is touched by the petroleum industry and Joe Biden comes out publicly and vows to “end fossil fuels”. 

Those additional transportation costs are passed on to the consumer in the price we pay for the products. The farmer must charge more to get chicken feed, then to get his chicken to the processor, and the processor must charge more to get the chicken to the supermarket.  Don’t forget their electricity costs went up too. Now you understand why the chicken price per pound is up over 22%.

The problem with inflation is after the prices rise, they rarely go back down to their original level before the event happened that caused the fluctuation. Even if the price of oil drops drastically, we will not see consumer prices drop at the same rate.  Other factors, by-products of inflation, such as rising interest rates will hinder getting back to the pre-Biden days.

Joe Biden tried blaming Vladimir Putin’s invasion of Ukraine as the cause of our inflation. As was shown in the chart above, the invasion had only a small impact that didn’t last long. Biden did the damage long before the invasion happened. Another one of Joe’s excuses was “Oil Company Greed!” Oil companies are publicly traded on the stock markets with thousands of investors, including pension funds, mutual funds, and retirement funds to name a few.

They have a fiduciary responsibility to their shareholders. What would you say if your investment dropped 25% and the company said “sorry, we’re trying to make Joe happy?” Biden caused worldwide inflation and blames everyone else for his short-sighted actions.

Joe Biden’s ignorance of the economy and the world caused the worldwide inflation debacle we are all in now. His rhetoric and actions for the New Green Deal have crippled our economy while promoting solar energy and emboldening China.

Stand up and act! Write the White House and let Joe know how his actions have affected you. Get involved with your local Republican, Libertarian, and Conservative groups. Call, write, or e-mail your Representatives in Washington and let them know how you feel.

Use the Links Tab at the top of the web page to look up that information if you need it. Work for campaigns and donate your time and money. Start talking to everyone you know that will listen. It’s time to throw these elected officials out of office that are taking the country down the wrong path. Share this blog with everyone on your e-mail lists and get the word out!

Similar To This

Most Recent