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Breaking Point: The End Of The Cheap Energy Economy
Americans consume 20 million barrels of oil per day and FutureMoneyTrends asks what will happen when the price of gas reaches $4, $5, or $6 per gallon. Between exponentially rising fuel prices and stagnant wage growth for those employed, American consumers were broken in the lead up to the start of the depression recession in 2008. The situation is massively worse now than at the bottom in March 2009 (from $2.00/gallon to $3.92 currently) and that is where they take up the narrative of where we go next as the cost to drive has more than doubled in the space of three years and is on an unsustainable path; either as a nation of consumers facing de minimus wage growth, or the lack of firms' ability to pass this cost on to consumers leading to more unemployment. As the unreality of the S&P 500 passing back above 1400, a reflection back on the real economy is sobering to say the least.
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But wait! There's more!
Asphalt burns. Electricity comes from coal burning plants and . . . guess how the coal gets to that plant? Right. Diesel fueled transport.
So goodbye electricity and goodbye heat. Sorry, your natgas forced air furnace needs a fan.
Plan on burning the roads to stay warm.
It's too bad the President won't use the Ponies for Everyone stimulus plan, to save us from this horrible future:
http://www.youtube.com/watch?v=4d_FvgQ1csE
I ride a used Yamaha Zuma for commuting and grocery getting. It's as much fun around town as the R1 (see avatar) is on the back roads. It paid for itself in less that 1000 miles. I get made fun of all the time but I average around 250 miles a week and spend about $15 with gas and oil. I love scooters!
This is the master plan to fight the obesity problem.
Does Richard Koo know about this? By the way, Who is Richard Koo?
US gasoline demand is collapsing .. 57 weeks in a row or something.. Conventional oil production is sliding too. Most costly oil is being produced.
I winged the 57th week... I was right. Demand down 6.1% y/o/y but prices only 1.3% higher from last year. What is this GDP BS showing growth?
Gasoline demand fell 6.1 percent from a year earlier as a gallon of the fuel at the pump cost 1.3 percent more than it did last year, MasterCard said.
Gasoline use was unchanged from the previous week.
Retail prices, however, fell 2 cents a gallon from the previous week to $3.90 a gallon in the week to April 20, MasterCard said.
The report also said the four-week moving average for demand fell for the 57th straight time, down 4.7 percent from a comparable period a year ago.
That's US data.
China is buying 24 million cars Each Year. Unlike the US, when a new car is bought there, an old car doesn't roll off the back end of inventory to the junk yard. Chinese cars are bought by people who have never owned one before. Those 24 million cars are all NEW, PERMANENT OIL CONSUMPTION.
There is no solution for this but killing and death.
Soon.
Or is GM channel stuffing in China, too, with US bailout money? Losses here, tax breaks there, free money here, all the profits there?
'Round and 'round she goes . . .
I think it is GM who is opening a huge new plant in China to employ what else, Chinese.
GM had a billion dollars in the bank in China, yet were broke here, hence the massive GM bailout and shareholder wipeout.
Someone benefitted mightily, and it wasn't the unions.
the UAW was preparing for years before '08 or they would of crashed and burned too - they gave and gave and know it is a losing cause in this country and just trying to save the retired folks
"would of"?
Grammatically speaking, I think your wrong their.
Thought it was a pretty good video, but I'd be interested as to why they picked $5 per gallon (as opposed to $4.83 or $6 or $8) as the breaking point for the U.S. They chose a conveniently close price point but didn't say why THAT one.
Not saying they're wrong, but that they didn't say why $5 in particular. They made a pretty big deal of the $5 point without really supporting it.
I thought it was fairly informative in talking about recent price movement although I don't know why they didn't mention the quadrupling of the price in 10 years (from about $25 bbl in 2002 to about $105 in 2012, or thereabouts, if memory serves). A little heavy on the anecdotal stuff, and too focused on only the U.S. without giving much of a global context. (The bits about other countries tended to imply 'boom' rather than 'bust' I thought, and not much info about the Middle East conflicts which they did set as problem no. 2 in a list of 3.) This is after all a global problem.
I'd have had more charts and less random guys in the street saying "I'll have to find alternatives if it gets much higher". But then, what do I know about producing videos that people will actually watch.
Maybe because Americans have $4.XX gas freshly in their mind, and won't REALLY get pissed until they see the $5 handle at the pump?? Just a thought.
A few years ago it was calculated that trucks would quit hauling with diesel at $4.50/gal.
It's not about gas for cars. It's all about the cost of diesel for heavy equipment, farm equipment and the trucks that haul whatever they mined or grew.
No one really cares if you can drive to work or not. They have a plan for that, too, and you aren't going to like it.
how high till the cops stop driving?? hopefully soon
Very, being critical services and all. They'll be driving even after gasoline is "unavailable to the public."
Probably the end of the Democratic party, and the environmental movement
The Democratic party died somewhere along the way. for years now they have just been dressing up and manipulating the corpse.
We need a new party that represents people, not corporations and bankers.
2 wheel vegetarian push biker here...my cheap energy is beans in a can.............endless supply..............readily available..........
putting the mettle to the peddle...
As a fellow bike rider - you should be stocking up on the beans, rice, pasta etc. because those cans won't be moving to the stores where you buy them when the gas is too expensive.
Is it just me, or does this video have an inflation.us feel to it?
Do you mean the National Inflation Association?? NIA? A video blog penny stock pusher trying to pass himself off as legit? I thought it had the same feeling.
This is the magic bullet with which O'Bama will take down the United States.
Trucks don't roll- no gas. no food. no electricity. no other supplies for business (whose workers cant get there anyway.
This opens up the EO he recently signed allowing him to take over everything during peacetime.
The Kenyan will have power over every aspect of America, and you will obey him or die.
The Communist cabal who put him in power has worked on this plan for many years.
Now it's Game On!
Maybe.
Energy is the crucial item moving forward.
The global banking cartel will never let a crisis go to waste.
The trucks will roll; the President and his cabinet can choose to subsidize the price of fuel for any industry deemed vital. They can, and likely will, lower the price of fuel for farming and transporting fuel to the Wal-Mart. There, people can buy their food with their EBT. Crisis averted, no riots. "Recovery" on!
Yeah, the EBT you get by pledging allegiance to Hitle---er, O'Bama and attending Mosque.
Plus, you get a chip in you the predator drones flying overhead can track and blow you up if you don't make it to the mosque on time, or you wander too close to a church or synagogue.
trucks will roll, prices will go up and margins will just be compressed that much more.
FWIW Dept:
http://en.wikipedia.org/wiki/OPEC
http://en.wikipedia.org/wiki/1967_Oil_Embargo
http://en.wikipedia.org/wiki/1973_oil_crisis
Note: What we have here is a solvable problem. We as american's can take our future back, period! America's ingenuity and entrepreneurship [fuck the fascist regulators and eco-freaks] has been shackled by a Marxist [definitely orientated] Government,... it's time to severe the chains! Natural Gas for all cars,trucks, and any other transportation vehicle that can crawl is so easy to implement, it just boggles my mind by the naysayers.
jmo
thankyou tyler
Infinite ingenuity cannot survive on finite resources.
50 years [being ultra liberal here] oil max., period! [never mind the war's for the last drops in the mid-century?]
150 -250 years [being ultra conservative here] nat.gas, period!
Note: it is important to realize, that from a bbl of oil, the derivatives of said by-products through distillation are imperative for a myriad of manufacturing/ industrial application, least of - why we should wax ourselves off,... oil as a transportation necessity. [remember, necessity is the mother of all inventions]
Ps. granted, all natural resources are finite [agreed], but,... and it's a big but - with nat. gas., we have adequate time, and a abundant supply to advance technologies such as thermal, wind, solar, tidal, super-conductivity, and yes, safe nuclear energy through 'thorium' [meltdown and melt`up fail-safe] energy, etc., etc..
jmo
And the price of nickel will soar to ridiculous heights, until LENR balances out to the same price / performance range as gasoline. On the upside, that might stimulate space mining, since nickel seems to come from meteors.
Space mining is based on extracting water and platinum from asteroids:
http://www.dailymail.co.uk/sciencetech/article-2135989/Wanted--asteroid-...
Nothing about energy sources.
It's not the price of gas that kills me. It's the price of autorepairs. Yikes. Every little thing is $900 for a little grey box with a microprocessor in it. There are 100 of those little things in the average car now.
I'll say it again. We in these here united states of America have the technology, the resources and plenty of unemployed and most certainly the ability to print enough Federal reserve notes to gear this nation to an alternative transportation system mass transport and private vehicle based. We better get with it soon while we still have enough oil to get the job done. What is missing is political will. What is missing is enough people demanding change. What is missing is big oil getting on board. What is missing is the sense of urgency that if we don't get moving on this we will all be trying to join Amish communities to survive.
What's happening is the EPA was ordered to crucify the oil industry.
By the Kenyan's bosses.
What is missing is oil. Underground. It's not where it used to be.
Nothing else matters.
if corporate USA leaves USA totally its the worst thing that would happen to USA short term and best thing that would happen to US long term. Just pray they all go and settle in Dubai or Singapore or Peking. It would leave America poor but freeeeeeee!!!!
bah, $50 or even $100 more a month for most middle class just means no cable tv and no new igizmos. Suck it up people...
Hold yer horses for a minute... Here is a way for some of you to get aroung all of this...
http://www.gengas.nu/byggbes/index.shtml
Yay! It's finally O'Bama's fault!
What we forget is that half or more of what we do with petroleum is useless waste, ingeniously disguised as an "economy."
I'm telling anybody here with ears to hear, Las Vegas and NASCAR and college football and SUVs and 40 mile commutes and plastic crap from China could disappear tomorrow, and most of the world wouldn't miss a beat.
It would result in unemployment, yes, but then there's always food stamps and internet porn to keep the peons satisfied.
Obama has ordered the stopping of all oil drilling in the USA. This is part of his plan to force high priced green energy onto citizens. With oil drilling shut down he will move on next to shut down gas drilling. He is a liberal muslim from Kenya, we should expect no less from a non-citizen with no birth certificate who sits in the White House under false pretenses and no one does anything about it. A radical Muslim like Obama who is anti energy and not even an American is bent on ending American oil industry just as we are set to become one of the largest oil and gas producers in the world. Why does the congress allow this? Is congress stocked with Muslims and Communists?
poor people are depressing
naked people are dressing...
uniformed people are oppressing
No one here knows what they're talking about.
By your own definition, that would include you as well.