Clear signs of Economic DEFLATION: Gas prices dropping to three-month low, but the Excessive Climate Change and Pandemic FEDERAL government regulations remain, driving up COSTS – July 23, 2022,
The prices Canadians are paying at the pumps are declining, not by much, but I’m sure we’re all glad to see the price declines, but from an economics perspective, one has to ask why gas prices are declining and if they’re declining for the reasons I pointed out a few months back when I made the claim that oil prices would crash because of a lack of economic activity which would then lead to a SPIKE at the pumps when OPEC oil producers start MANAGING supply to make the most money out of this opportunity.
Prices aren’t dropping because more domestic oil is being supplied to the markets; prices appear to be dropping because of a slowdown in economic activity. But you see, these are the periods in which Politicians, want to take credit for a fall of prices at the pumps, and you’d be wise to pay close attention to when politicians attempt to capitalize on this, because this is more of a market correction and less about the levers of government working to the benefit of consumers.
Let’s Imagine I was selling chocolate bars, and I anticipated by the end of the month, I would sell 100 chocolate bars, so I bought 150 chocolate bars from my supplier, but by the end of the month, I only sold 25 chocolate bars. Because my chocolate bars have a regulatory expiry date, I may have to drop prices to sell existing inventory, but moving forward, instead of buying 150 chocolate bars, I’ll buy 50 to preserve my margins because, after all, the regulatory burden imposed by the Canadian government only allows me to make a profit if I sell my chocolate bars at a certain price threshold.
In a nutshell, consumer behavior, in my opinion, is likely to lead to a change in supplier behavior; however, if the foreign gas companies can find a sweet pricing spot, they might control supply to hover around a certain price point, but the usually requires price discovery based on the data. I had argued previously that it wouldn’t surprise me if gas prices retreated near the midterms, as Joe Biden has been a huge help to OPEC+.
The invasion in Eastern Europe wouldn’t be possible without Joe Bidens war on domestic fossil fuels; Justin Trudeau equally has been declaring war on domestic fossil fuels since getting into office and the cost of living has been going up for Canada’s WORKING class, but I always like to write about the government dependent classes who are allowed to vote, because the welfare crowd plays a huge role in becomes the Federal leader of Canada and the U.S.
In the U.S Black women have become the backbone of the Democrat Party, this Black Women voting bloc supports the Democrats at a very clip, and one of the reasons for this is that a lot of Black women voting for the Democrats are on welfare.
Democrats are about twice as likely as Republicans to have received food stamps at some point in their lives—a participation gap that echoes the deep partisan divide in the U.S. House of Representatives, which on Thursday produced a farm bill that did not include funding for the food stamp program.
Now as a Canadian, you might say to yourself, this is an exclusive Black American problem; you’d be INCORRECT to make that assumption; most women DO NOT bite the hand that feeds them, and what the Left Wing governments provide even if it’s not SUSTAINABLE are promises to keep the gravy train running. The graph I point to above, does not tell the entire story, because it’s actually BLACK WOMEN who are receiving the most food stamps; when you think food stamps, it’s usually a SINGLE mom
As the 2020 presidential election comes down to the wire, it’s clear that Black women continue to be the Democratic Party’s most powerful voting group.
Not only did 91% of Black women vote for Democratic presidential nominee Joe Biden according to NBC News exit poll results, but Black women have also been on the front lines of this year’s election, working to ensure that all eligible voters have their voices heard at the polls.
One of the reasons Black women vote for the Democrat Party REGARDLESS of the reality of Democrat policies destroying their neighborhoods is because Black female voters have to weigh the pros and cons of NOT voting for the Democrat Party. If you’re a SINGLE mom, the government is the best baby daddy to have, especially if the selection for your child’s father is not the best.
Now, to those of you imagine that this is purely a black woman problem, you’re wrong; this appears to be the blueprint of how Left-wingers destroy capitalism, break up the family and force people to be dependent on the State. Why Black Americans got the brunt of this appears to stem from their subcultures or their lack of a culture based on sound economic principles.
Because when you start to separate Black Americans from Nigerians in America or even in Canada when you separate Jamaicans from Ghanaians, you’ll start to notice that this had little to with race and more to do with CULTURE. What this has to do with Gas prices is that although Americans may likely throw the Democrats out of office by the end of 2022, Canada may have other problems to contend with.
In Canada, I’d argue the Left Wingers have made a larger foothold in Canadian politics than in the United States. In Canada, what has led to better economic policies has been to keep the Liberals and NDP out of office, which only appears to happen when the NDP or Liberals have low voter turnout. One of the reasons I will continue to support the People’s Party of Canada is because vote splitting has benefited Leftists greatly in this country.
In the 2021 election in Canada, 60% of Canadians supported a Left-wing political party (Liberals, NDP, Greens, Bloc 60.41%). What put a smile on my face were the People’s Party of Canada numbers, which totaled which actually took 2% market share from the Left-wing Political Partys in Canada. I personally do not think the People’s Party of Canada is going away. I’d like the PPC to be a PERMANENT fixture in Canadian politics.
Although the Conservative Party of Canada is surging, what I’d like to see is the People’s Party of Canada still have 5% support. A lot of people who DID not support Erin O’Toole DID NOT vote for the People’s Party of Canada, and that’s really important to understand when you start talking about Conservative Party front-runner Pierre Poilievre.
Pierre Poilievre doesn’t appear to be strictly taking votes away from the Liberals; a lot of NDP voters are leaving to the Conservatives also. I’m not sure what this means, but what I do know is the Liberal Party is heavily reliant on Justin Trudeau, and quite frankly, if Justin Trudeau called an early election and ran against Candice Bergen, I think she would beat him.
Why I say, this is that these lower gas prices aren’t going to benefit Justin Trudeau because he’ll be the leader until 2025 unless his alliance with the NDP is broken. So if this decline in gas prices is only temporary, it could spell serious problems ahead for the Canadian economy because in my opinion, if gas prices CRASH in this environment, I expect OPEC+ to limit supply to drive prices back up again.
The worst part of a price decline in gas prices is that it will be a FALSE signal to left win governments that their dumb ideas are working, which will inevitably incentivize them to add on EVEN MORE regulations to the economy. In the mind of a low-IQ Leftist politician, they imagine greed as the only reason prices increase, assuming that their pandemic and green socialism agenda have nothing to do with rising costs for businesses.
Left Wingers usually conflate NET WORTH with actual wealth. Networth only allows you to BORROW more money; Networth doesn’t mean you have that money in a liquid position, but ofcourse Left-wingers don’t understand that with their ideological state of mind, you can see how a drop in oil prices may fuel even more green energy regulation, which may indeed make economic deflation even worse.
Interesting times ahead!