56. Dangerously low U.S. emergency oil supplies could reignite inflation as Fed ponders a pause

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DRAINED BONE DRY

It was once famously said that, the dollar is our currency and the rest of the world’s problem.

Perhaps true, but one problem shared by all lately has been inflation.

Although the U.S. government lacks the responsibility to reign in the fiscal profligacy causing the ever-rising cost of everything, it does have the power to reduce the price of at least one thing. Oil.

Correction, the power is in the hands of the President, and the magical power he controls is the Strategic Petroleum Reserve (SPR).

So, what’s a President to do with such a power when their approval rating is at a record low?

Simple. Drain the SPR and sell the oil to hopefully bring down the price.

But, has Biden crossed a red line with this attempt to win votes?

Is the recent move higher in oil price the beginning of runaway inflation or will the central bank put out the flames with one final rate hike?

These pressing questions, and more, are tackled by the Milkshakes Duo in a broad weekend discussion that covers global monetary policy, oil price manipulation, and the RE-dollarization of the world.

Learn more on the latest full-length episode of Milkshakes, Markets, Madness.
https://youtu.be/_F6Fq2kWs14


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FULL-LENGTH EPISODE
(Season 01, Episode 40)
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00:00 – Video intro (26 seconds)

00:28 – Title screen and disclaimer

00:30 – Channel segment explainer

02:23 – Inflation data reaction

04:26 – Rate hike odds

09:39 – Lag effect

11:52 – Credibility and animal spirits

16:20 – Oil and the SPR

26:18 – Power to the President

31:06 – ECB hike fuels dollar rally

33:18 – Argentina dollarization

37:34 – Austerity and prosperity

41:53 – The wrap-up

43:24 – Outro

43:38 – Disclaimer


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LEARN MORE
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Every week, Brent Johnson and Jon Kutsmeda invite you to share a laugh at their favorite Twitter tantrums, and the madness of financial markets.

If you are tired of drawn out, jargon filled, boring financial podcasts, then tune in for Milkshakes, Markets, & Madness to enjoy the lighter side