Oil Companies Refusing to Up Production?

[NickViar]

@castoli

All are slaves to orthodox economics.

Those derelicts!

[castoli]

Your words, not mine.

[NickViar]

In all seriousness: I’m happy that Zep no longer posts realnewz links. I’m also happy that he no longer has obese women in thongs as his avatar.

[castoli]

@NickViar

It HAS to either inflate the cost or cause a shortage. Those are the only options. I’d love to hear an explanation for any other possibility.

If real resources are running out, inflation can result. But printing money cannot cause our resources to run out.

[castoli]

@Alrightmiami19c

We’re starting to see what happens when the ignorant outnumber everyone else; runaway deficit spending, cronyism, inflation and shortages

So deficit spending is bad, why? Please do tell.

[doogie]

@castoli

So jack up prices is your solution? Or the jacked up cost is justified?

I asked you where you think all the slack is at the refineries that would produce gas if the oil companies upped production. You know, because the title of this thread “Oil Companies Refusing to Up Production?” What do you think pumping more oil would accomplish?

[NickViar]

That’s not an explanation. Explain how more money does not either cause a shortage or inflate prices. Obviously, printing money does not, by itself, deplete resources. But you can’t just stop there; people are going to use that money.

[castoli]

@doogie

I asked you where you think all the slack is at the refineries that would produce gas if the oil companies upped production. You know, because the title of this thread “Oil Companies Refusing to Up Production?” What do you think pumping more oil would accomplish?

Why would the oil companies rev up production and bring down the cost when they are bragging about the profits they are making to their shareholders? Are you saying that production cannot be bumped up because the refineries are acting at full compacity?

[castoli]

@NickViar

Explain how more money does not either cause a shortage or inflate prices.

It can. Is it? Do the trillions spent on endless wars in the mid-east cause inflation? What about the trillions spent in bank bailouts, has that caused inflation?

[hustlinghat93]

@RT_Nomad

Too much money chasing too little good

@castoli

Bingo! The main cause of inflation

I’m confused.

If you agree this is what causes inflation, how can you not agree that either:

1. Keeping the same amount of money in circulation but decreasing supply of goods would result in “too much money chasing too little goods” therefore causing inflation
2. Increasing the money in circulation but keeping the current amount of goods would result in “too much money chasing too little goods” therefore causing inflation.

And if you agree with the above, then surely you see why printing more money falls into example 2?

[castoli]

@hustlinghat93

Increasing the money in circulation but keeping the current amount of goods

And why do the current amount of goods need to stay the same?

[NickViar]

@castoli

Is it?

Yes.

@castoli

Do the trillions spent on endless wars in the mid-east cause inflation? What about the trillions spent in bank bailouts, has that caused inflation?

If that money was just printed up, then absolutely.

What, exactly, are you arguing?

@castoli

And why do the current amount of goods need to stay the same?

They don’t “need to,” but you’ve argued that printing excess currency can not cause inflation. An increase in production is not related to your argument.

[hustlinghat93]

No one said they NEED TO, just showing how printing money can cause inflation.

But it is impossible to increase the money in circulation and increase the amount of goods at the same time. One most occur before the other and considering that increasing the amount of goods requires

1. Financial investment
2. Increased production and efficiency across the supply chain

businesses would not (and SHOULD NOT) increase their production of goods before an increase of money exists because that’s a risk of loss of capital.

The issue is that the financial investment above to increase production only truly happens once inflation hits (so companies would spend more due to devaluation of their money) so even if production capacity is increased companies need to recoup the cost of the money spent to up production before increasing goods on the market

[doogie]

@castoli

Are you saying that production cannot be bumped up because the refineries are acting at full compacity?

Yes.

The US Hasn’t Built A Major Oil Refinery In Nearly 50 Years. Here’s Why

Refining Capacity 101: What to Understand Before Demanding “Restarts”

[Alrightmiami19c]

@castoli

All are slaves to orthodox economics.

Keynesian economics?

[Bauber]

@castoli

So tell me, why can’t they explain how the U.S. pays for all those wars in the mid-east and why they can’t explain how those trillions were given to the bank to bail them out?

The US paid for past wars by raising taxes and selling war bonds, the current and recent wars have been paid for almost entirely with borrowed money, on which interest has to be paid. I think our interest on war expenditure as of 2022 is something like 1 trillion per year currently.

Treasury notes, bills, and bonds were sold to pay for the Trouble Asset Relief fund that bailed out the banks.

Now, where exactly are you going with this?

[Bauber]

@castoli

Do the trillions spent on endless wars in the mid-east cause inflation? What about the trillions spent in bank bailouts, has that caused inflation?

Neither of these give money directly to people to increase their purchasing power that leads to inflated prices.

That you are comparing the two is laughable.

@NickViar

If that money was just printed up, then absolutely.

This.

[Bauber]

@castoli

Are you saying that production cannot be bumped up because the refineries are acting at full compacity?

Why would they do this with no incentive?

If I were an investor / on the board, I would vote no in investing into more refineries (that is insanely expensive and will not see a return for 15+ years) with where the government is wanting to push energy going green.

@castoli

money is not scare, real resources could be.

The abundance of money makes resources scarce - hence inflation from printing money.

[Bauber]

@hustlinghat93

The issue is that the financial investment above to increase production only truly happens once inflation hits

Also, companies are not going to go into massive debt to ramp production for a temporary influx of purchasing power.

That government money is already gone and spent. It isn’t being continually infused into the buyers hands, so those companies would be left sitting with massive overproduction.

[FlatsFarmer]

The situation now is that the government is Trying to increase domestic production. This is the result of all those Populist ideas that people have been yelling about for the past 5-ish years.

There’s the “Fiscal Policy” or government spending (the plan behind too much money, chasing too few goods), aiming to keep the economy Hot. Plus tariffs on foreign goods, “protecting domestic business,” by raising prices to a level where US manufacturers are competitive with the rest of the world.

So what’s up now? Are US people willing to pay more for there to be more US jobs? Do we want more manufacturing in the US if everything costs 5-10% more?

As of right now, this Protectionism of domestic production is the policy of Both political parties. Tariffs started by Trump have been mostly maintained by Biden. This flies in the face of what learned Economists say to do, but a lot of people are against international free trade right now.

Where do we go from here?