When you have been having bidding wars on houses, you can't tell me that builders haven't been raking it in. They just won't make as much now.

And its not like they could increase production either - between low unemployment and the crack down on illegal immigration, there probably are not enough workers to increase the rate of home construction.

Manufactured goods can't meet demand, and the Fed is committed to boost rates all the way to, fears, shudders, hide under the bed, 3%. Powell is soft as a wet noodle on actually doing anything. He waits for the problem to become so large he can no longer ignore it, then he does the minimum amount three months after today. Where is this recession coming from? I really don't know who is dumber - the reporters trying to find relevance and competent sources, or the sources who think they know economics because they've watched it for 10 years.

It is due to price gouging by oil and gas companies to the tune of record prices and record profit taking in the twilight of the Petroleum Era.

There was a massive spike in gas prices back in 2007-2008 as well. The effect was a shock to people at the pump, an obiliteration of disposable income for millions, a massive and rapid tightening of spending on frivilous things like dining out, buying junk at mini-marts attached to gas stations, small purchases and delayed or post-poned durable goods purchases.

When gas prices spiral out of control like they are now and did then, two things happen:

1) Oil and gas companies refuse to absorb ANY loss or reduced profit taking
2) The macroeconomy suffers the equivalent of a massive stroke as spending is retracted and fuels fears among people who are barely making it from day-to-day in the first place.

I am fortunate enough to have a position that can absorb these insane gas price run ups. My car gets about 37-40 mpg and has a 15 gallon tank...giving me a range of ~555 to 600 miles per tank. That means at recent price points, I have paid the following for personal transportation (not including the oil change and tires and brakes I also need to have serviced and replaced):

6 weeks ago - gas was $3.45 a gallon = $51.75 a tank which was $0.09 per mile travelled
3 weeks ago - gas was $4.55 a gallon = $68.25 a tank which was $0.12 per mile travelled
Today - gas is $5.25 a gallon = $78.75 a tank which is going to be $0.14 per mile travelled

BUT...those costs are not the major problem in and of themselves on a single tank.
I need a tank of gas every 11 days or so, which puts my expenses due to gasoline around 3 tanks per month.

6 weeks ago that was about $155.25.
3 weeks ago that was about $204.75
This week that would project to $236.25 - only IF prices stop going up 20% A WEEK of late.

In the course of barely over a month, monthly expenses just for gas have gone up more than $80.
For many that might be a week or more worth of groceries and still rising...it certainly is close to cellular monthly bills for some, and for others, that $80 is never going to circulate into the economy because there is no choice but to cut expsense elsewhere to survive.

The worse this gets, the more people will stop spending to cover the budget hits and loss in purchasing power. Its a vicious circle and if its not taken seriously, it will eat the Democratic Party in November and put the Republicans on a glide path to total power in 2024 and he end of American representative republic by 2026 (or sooner).

I just do not see an answer to this problem that does not require changes that our current system is constructed to prevent. We are truly in a terrible position, the worst I can recall in my lifetime and at exactly the point we need youthful visionary leadership, we have the exact opposite on the horizon. Those who will inhabit the world of 2072 should be stepping up to demand change and those who will be dust and memory by 2052 (or sooner) should be championing a new generation and new perspective.

This current inflation crisis is not going anywhere. Republicans have absolutely zero ideas that would fix it anymore than Democrats have right now. Gas prices is the ONE THING that people focus on because its immediate pain, so too are groceries and day-to-day living expenses. This is going to swamp RvW, swamp gun control, swamp gay rights of any kind and also ignore racial justice as well. Its a perfect storm scenario that has the potential to capsize any vessels that fail to get out of its path and soon.

But these oil prices impact everything, driving up the price of everything as it costs more to move raw materials and finished products around.