"Gas Doom: Diesel Officially Hits $6.00 in California"
"Gas Doom: Diesel Officially Hits $6.00 in California"
California On The Brink Of Collapse, Panic Spreading Throughout The Nation;
California On The Brink Of Collapse, Panic Spreading Throughout The Nation;
Will It Be The Catalyst Of An Impending Market Crash?
by InvestmentWatch
by InvestmentWatch
"California is experiencing: budget shortfalls; high unemployment; pensions problems; cities Filing For BK; now gas shortgage. Diesel SHOULD be cheaper. It is less refined than Gasoline. You can take crude oil, heat it and Diesel will “come out” of the sludge all on it’s own. Watch the truckers who keep this nation in motion stop dead in their tracks. I know supply and demand, but no deliveries will make fuel even more expensive. No word yet, from any media, but $6.00/gallon for Diesel means truckers will have to pay extra money for the privilege of delivering fuel and good. As in they will actually pay out of pocket for each mile versus make money for each mile. Also, understand that loads often have pre-negotiated pricing. Added fuel costs aren’t figured in that price.
2010: "Every 1 cent increase in gasoline decreases U.S. consumer disposable income by about $600 million per year. The move in oil in the past week alone has almost entirely wiped out the most recent stimulus. Investors- certainly U.S. stock investors- would be wise to keep one eye on the price of oil, currently pushing $90 per barrel. Oil traded up 10 cents to $89.29 on Monday at mid-day. And the reason is obvious enough: once again, oil is approaching the danger zone, from a U.S. GDP growth standpoint.
No one knows precisely at what point oil begins to substantially hinder consumer spending and slow commercial activity- but this much is known: every $1 per barrel rise in oil decreases U.S. GDP by $100 billion per year and every 1 cent increase in gasoline decreases U.S. consumer disposable income by about $600 million per year. If the average U.S. price of gasoline, currently about $2.94 per gallon for unleaded regular, rises and stays above $3, that would cause consumers to think that ‘higher gasoline prices are ahead,’ and they’ll likely adjust their discretionary spending. Similarly, an oil price that rises and stays above above $100 per barrel has a similar psychological effect."
Watch Oil Prices For Clues The Next Recession Is Starting: I was confident that the Fed had already begun printing. That seemed quite evident by the overall action in the commodity markets, the dollar, and the fact that stocks were unable to correct in the normal timing band for a daily cycle low. However, I didn’t really expect Ben would come out and publicly admit it. That one took me by surprise Thursday. I guess Bernanke wants to get full value for his attack on the dollar and make sure that markets are rising into the election.
At this point all the pieces are in place for the inflationary spike and currency crisis I’ve been predicting for 2014. We now have open-ended QE that is tied to economic output and unemployment. But since debasing currencies has historically never been the cure for the bursting of a credit bubble, all the Fed is going to produce is spiraling inflation. So as this progresses we are going to see the Fed printing faster and faster as the result they are looking for never materializes. This is what will ultimately drive the currency crisis at the dollar’s next three year cycle low in 2014.
At this point, watch the price of oil if you want to know when the next recession is going to begin. As I’ve pointed out many times in the past, recessions (well, at least since World War II) have all been preceded by a sharp spike in the price of energy. Any move of 100% or more in a year or less, has historically been the straw that breaks the camel’s back. Modern economies cannot survive that kind of shock. It invariably triggers the collapse...
Does Expensive Oil Inevitably Cause Recession? Writing at the Harvard Business Review blog, Chris Nelder and Gregor MacDonald present this position clearly: “The connection between oil shocks and recessions has been understood for decades. We have ample historical evidence that when petroleum expenditures reach 5% of GDP, recession typically follows. Annual energy expenditures rose from 6.2% of U.S. GDP in 2002 to a painful 9.8% in 2008, which was immediately followed by an economic crash. And now oil is sending energy expenditures back above 9% of GDP, just as we see fresh indications that the recession persists. This is not a coincidence.”
California Gas Crisis Is Be Spreading To Other States: Calif. jump pushes gas prices over Hawaii’s: HONOLULU (AP) — "A 20-cent jump overnight in California gas prices has put the state ahead of Hawaii for the nation’s most expensive gas. AAA’s Daily Fuel Gauge report says Cailfornia’s average price for regular gas across the state is $4.49 a gallon. In Hawaii, it’s $4.41."
No one knows precisely at what point oil begins to substantially hinder consumer spending and slow commercial activity- but this much is known: every $1 per barrel rise in oil decreases U.S. GDP by $100 billion per year and every 1 cent increase in gasoline decreases U.S. consumer disposable income by about $600 million per year. If the average U.S. price of gasoline, currently about $2.94 per gallon for unleaded regular, rises and stays above $3, that would cause consumers to think that ‘higher gasoline prices are ahead,’ and they’ll likely adjust their discretionary spending. Similarly, an oil price that rises and stays above above $100 per barrel has a similar psychological effect."
Watch Oil Prices For Clues The Next Recession Is Starting: I was confident that the Fed had already begun printing. That seemed quite evident by the overall action in the commodity markets, the dollar, and the fact that stocks were unable to correct in the normal timing band for a daily cycle low. However, I didn’t really expect Ben would come out and publicly admit it. That one took me by surprise Thursday. I guess Bernanke wants to get full value for his attack on the dollar and make sure that markets are rising into the election.
At this point all the pieces are in place for the inflationary spike and currency crisis I’ve been predicting for 2014. We now have open-ended QE that is tied to economic output and unemployment. But since debasing currencies has historically never been the cure for the bursting of a credit bubble, all the Fed is going to produce is spiraling inflation. So as this progresses we are going to see the Fed printing faster and faster as the result they are looking for never materializes. This is what will ultimately drive the currency crisis at the dollar’s next three year cycle low in 2014.
At this point, watch the price of oil if you want to know when the next recession is going to begin. As I’ve pointed out many times in the past, recessions (well, at least since World War II) have all been preceded by a sharp spike in the price of energy. Any move of 100% or more in a year or less, has historically been the straw that breaks the camel’s back. Modern economies cannot survive that kind of shock. It invariably triggers the collapse...
Does Expensive Oil Inevitably Cause Recession? Writing at the Harvard Business Review blog, Chris Nelder and Gregor MacDonald present this position clearly: “The connection between oil shocks and recessions has been understood for decades. We have ample historical evidence that when petroleum expenditures reach 5% of GDP, recession typically follows. Annual energy expenditures rose from 6.2% of U.S. GDP in 2002 to a painful 9.8% in 2008, which was immediately followed by an economic crash. And now oil is sending energy expenditures back above 9% of GDP, just as we see fresh indications that the recession persists. This is not a coincidence.”
California Gas Crisis Is Be Spreading To Other States: Calif. jump pushes gas prices over Hawaii’s: HONOLULU (AP) — "A 20-cent jump overnight in California gas prices has put the state ahead of Hawaii for the nation’s most expensive gas. AAA’s Daily Fuel Gauge report says Cailfornia’s average price for regular gas across the state is $4.49 a gallon. In Hawaii, it’s $4.41."
• From ABC News: Soaring gas prices across California have forced some station owners to shut off their pumps while people change their driving habits or, in some cases, avoid driving all together.
• All Valero stations halt Gas Sales in CA
• Gas prices in Oakland, Yikes! The photo speaks for itself.
• Gas Prices Spike as Wholesale Supplies Dwindle
•Wholesale Gasoline Shortage In California Causes Gas Stations To Shut Down: Hoarding Next?
• All Valero stations halt Gas Sales in CA
• Gas prices in Oakland, Yikes! The photo speaks for itself.
• Gas Prices Spike as Wholesale Supplies Dwindle
•Wholesale Gasoline Shortage In California Causes Gas Stations To Shut Down: Hoarding Next?
Nightmare Could Last For Weeks: "California drivers may have to wait until November to see any relief at the pump, analysts say. The state’s gas prices surged 17 cents last night and have spiked 36 cents in the past week. A confluence of factors have caused Golden State gas prices to jump, including refinery outages and pipeline disruptions. But the most persistent driver has been the government’s mandate that summer blend gasoline be sold through Oct. 31, AAA analyst Avery Ash told us by phone. Wholesalers have begun petitioning the EPA for waivers to switch to winter blends for some early relief, he said. Without that relief, prices could top the state’s 2008 record of $4.61 early next week."
Consumer Frustration Also Goes Up: What goes up, must come down. But in the meantime, consumers try to cope. Southern Californians are paying the highest prices in the nation currently. And experts say that pain at the pump will last a little while longer. One station in Calabasas is charging the highest rate in LA County- nearly $6 for a gallon. Reporting for CBS2 and KCAL9, Amanda Burden went to the station and called it a virtual ghost town. She said cars peeled in but peeled right out when they saw the sign for $5.79 a gallon for regular. Said one customer, “I can’t believe this! $5.79 a gallon? Oh my God!” Said another, “Crap! I’ve never seen it so high. This is unbelievable.”
Consumer Frustration Also Goes Up: What goes up, must come down. But in the meantime, consumers try to cope. Southern Californians are paying the highest prices in the nation currently. And experts say that pain at the pump will last a little while longer. One station in Calabasas is charging the highest rate in LA County- nearly $6 for a gallon. Reporting for CBS2 and KCAL9, Amanda Burden went to the station and called it a virtual ghost town. She said cars peeled in but peeled right out when they saw the sign for $5.79 a gallon for regular. Said one customer, “I can’t believe this! $5.79 a gallon? Oh my God!” Said another, “Crap! I’ve never seen it so high. This is unbelievable.”
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