Can Someone ExplainThis to me. How do more int rate increases help ease an already very tight oil & gas
supply situation? Is demand destruction going to slow the summer driving season
or cause people to turn off their air conditioners throughout those blistering hot
summers days and nights only to be folllowed by the fall and winter when demand
will increase again. Then there is hurricane season and its destructive force on
energy markets. Then there is all that pent up demand from the pandemic lockdowns
when people are desperate to get away on vacations by air or by car.
The narrative we are being fed is that increasing int rates will start to curb inflation.
Well the main reason for inflation is high energy prices which was caused by years
of inderinvestment and bad gov't policy. The prescription for solving this is to raise
int rates but I fail to see it. In fact it might makes thing worse, not better. Joe Biden
wants oil companies to drill to increase supply but the oil companies are smarter
this time after years of being driven into the ground. Is there something I'm not seeing?