neil: got it. i m jumping on you here because i wanted to pick your fine brain on the fed. they raised rates. the first time in four years. indications are many more rate hikes to come. stocks are soaring. why? because this is one of the weakest of weak tea rate increases in the face of inflation that we ve seen in markets in the short term. this is nothing. this is a blip. we have 7, 8% cpi printed. probably doubling digits. that s before the oil shocks. this is we have bad inflation. this good is dithering. of course, stocks like this in the short term. they re not going to like it if we keep getting inflation and, you know, he has to turn and and say forget about seven 25-point increases. we have to do ten. it s different.
The sanctions placed on Russian oil may give new impetus to the energy transition by encouraging developed economies to find new sources of energy. Current policy has focused largely on supply-side responses to manage this development; this column argues that demand-side policies may also play a critical role. The authors argue for policies that increase the price elasticity
moment. go through them quickly. in 2008, we saw rising prices with skyrocketing gas prices from 1989 to 1991, kuwait, led to the first gulf war and uncertainty around the world and crude prices shot up. that caused inflation. the u.s. experienced its longest stretch of heightened inflation in the 1970s because of an oil embargo implemented against the west by opec and decline in oil production caused by the iranian revolution. these last three inflationary episodes were all caused by oil shocks. so we can t really compare what s happening today to these ones because while we re all paying more at the pump, oil supply is not the root cause of our current inflationary concerns. let s go farther back to 1969.
in fact, i think we consume that much, i was waiting to go on the air today since breakfast. we are talking a global market, charles. that amount of oil is equivalent to about half a day supply. even if you looked at the united states by themselves, we are talking about three and a half days of supply. so this is nothing more than a band-aid to try to not only lower gasoline prices, but to raise president biden polls numbers which seem to be going the opposite direction of the gasoline prices. charles: yet we know that these oil shocks of not only lead to presidencies in office, but almost every major recession has been sparked in part by the rise of oil prices. so, the white house will maybe have to do more than this. it is one thing to do a public relations stunt. it is another to really truly try to curb it. we are such a powerful producer, phil, why don t we produce more oil and lower the price that way? you are absolutely right,