“Seek Yahweh while He may be found. Call upon Him while He is near. Let the wicked forsake his way and the unrighteous man his thoughts and let him return to Yahweh, and He will have compassion on him. Turn to our Elohim, for He will abundantly pardon.”
Isaiah 55: 6-7
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If You Don’t Read Anything Else Today, You Need to Read This
If you don’t read anything else today, you need to read this. Below are 2 articles. Please don’t just read the brief excerpts from the articles. You need to read the articles themselves. After the articles, I talk about the problem. You need to read that, too.
Article 1: Diesel Shortage Leaves US With Just 25-Day Supply as Demand Surges: Report
Diesel stockpiles in the U.S. are reportedly at their lowest point since 2008, with only enough fuel for a 25-day supply, according to a recent report from Bloomberg. Demand is also said to be at its highest point since 2007, creating a dangerous supply/demand combination that’s causing spikes in pricing. The Biden administration called the nationwide diesel supply “unacceptably low” and is looking at all options to build up the national supply to help reduce prices.
According to U.S. Energy Information Administration (EIA), the average price of diesel is at $5.34 per gallon. That’s an increase of $1.67 per gallon, compared to this time last year. The area getting hit the hardest is New England, where people burn diesel fuel for heat more than anywhere else in the country. There, stockpiles of diesel fuel are a third of what they normally are at this time of the year. However, the highest cost of diesel fuel is in California, where the average cost is almost $6.50 per gallon, an increase of almost $2.00 per gallon over this time last year.
Article 2: What ‘Backwardation’ Has to Do With US Diesel Squeeze
A crisis is once again brewing in the US for the diesel fuel that powers trucks and heats homes. Global shortages and a market phenomenon known as backwardation are frustrating Biden administration efforts to bolster dangerously low domestic inventories and keep prices from soaring as winter approaches. Officials are now considering steps like export restrictions that would be unprecedented — and that critics say could well backfire.
[…]
Backwardation and contango are names for curve structures that map traders’ guesses about what a given contract will be worth in the future. In the former, the curve is downward sloping, meaning prices are expected to fall in the future; in the latter, it’s the reverse and upward sloping. Right now, traders are paying more for prompt deliveries than longer-term ones. This backwardated market structure incentivizes suppliers to sell now instead of holding onto the product — the opposite of what President Joe Biden wants them to do.
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In October, the diesel curve had become so backwardated that sellers risked losing as much as 30 to 40 cents a gallon holding onto the product until the next month, compared with less than 1 cent at the same time last year. Not only was the spread unusually large, but the backwardation had lasted unusually long: Typically the diesel market flips into contango in the summer, allowing suppliers to replenish fuel ahead of peak harvest and heating season. This year, that never happened.
What You Need to Know
When Joe Biden tried to appease the left wing of the Democrat Party by attacking U.S. oil and gas producers right out of the gate when he took office, he sent a shock wave through the system. The first problem ordinary Americans saw was much higher prices for gasoline and diesel fuel at the pump. The price increases were dramatic. Everyone in our nation felt the pain, and they are still feeling the pain.
The second problem ordinary Americans saw was a very rapid increase in inflation. Energy price increases caused the inflation. Every product and service we need to live includes an energy cost component, and the prices of everything soared at the same time. Inflation is still high, much too high, but it can get a lot worse.
The third problem ordinary Americans saw was a rapid rise in interest rates. To bring inflation under control, the Fed had to raise interest rates, and because inflation had increased so dramatically, the Fed had to raise interest rates aggressively. Since so many Americans have used debt to make purchases of almost everything they buy, their interest payments increased dramatically, too. Mortgage interest rates increased dramatically as well. That sent a shock wave through the housing market, and housing prices started to fall. The problem in the housing market is just now beginning to take effect. In the next few months, the housing market problem will manifest itself in many ways that will affect ordinary Americans more than they can imagine. I’ll have more to say about that at a later date.
Finally, ours is a market economy. Supply and demand drive product availability and prices, and the financial markets did what they are supposed to do. Financiers guessed at the direction of product demand and made their bets. They missed the mark on diesel fuel, and the supply of diesel fuel fell dramatically. At this moment, the U.S. has only a 25-day supply of diesel fuel. That’s the worst it has been in the last 3 decades. Since diesel fuel is used in trucks and trains and boats and since trucks and trains and boats are used to move the products we need from the places where they are produced to the places where we buy them, we could be on the verge of empty shelves for everything we need.
A Perfect Storm is Developing
A perfect storm is developing that has the potential to affect our economy like nothing we have ever seen. The diesel fuel supply problem is the last straw, the straw that can break the camel’s back. If it develops into a serious problem, interest rates and inflation will increase at rates that are off-the-charts. The Fed will have no choice except to be more aggressive in raising interest rates, and the housing market bubble that people are beginning to discuss will burst. If that happens, housing prices will plummet. Since most Americans have most of their net worth tied up in their homes, they will have very little wiggle room while they face the worst economic situation since the Great Depression.
Keep in mind that the Great Recession of 2008 was primarily a housing market problem. This problem will affect everything.
On top of the problems I mentioned above, when Joe Biden was elected president, Russia started to flex its muscle. Vladimir Putin invaded Ukraine and cut off energy supplies to Europe. That sent another shock wave through the system. We are still trying to work through those crises, and we’re hoping to find solutions before winter.
Good luck with that. Europe should prepare for a brutal winter. Some Europeans will be unable to heat their homes or buy enough food to eat. It could be the worst winter in Europe since World War II was being fought. Civil wars and revolutions are known to accompany situations like this.
Joe Biden is Responsible for All of This
This is a fact that you must accept and understand: Joe Biden brought about all these problems. Biden is only indirectly responsible for Putin’s belligerent moves. Putin knows that he is dealing with a lightweight. Biden is a known commodity in the Kremlin. The Russians profiled Biden long ago while he was in the Senate, and they followed every move he made as vice president. Putin thinks he has nothing to fear from Biden.
If Donald Trump had been elected president, Putin would not have done those things. Trump moved aggressively to build up the U.S. military, and he sent strong signals to our European allies that they would have to do the same thing. He also moved aggressively to make the U.S. energy independent. During Trump’s administration, the U.S. became the world’s leading energy exporter. Thanks to Joe Biden and his Democrat comrades, all those pressures are gone now. Putin is free to roam, and that’s what he’s doing.
Every domestic problem I mentioned above is attributable directly to Joe Biden. His attack on U.S. energy producers right out of the gate to appease the left wing of the Democrat Party brought about all the problems I mentioned. I fear that the worst is not upon us yet. We will know soon enough.
Be prepared. This may be a long, hard, cold winter for Americans, too. If it is, know this: We have no one to blame but ourselves. We rejected Yahweh’s man for a time like this and elected Joe Biden.
Some will say, “But I don’t like Trump’s style.”
Well, Donald Trump isn’t perfect, and he’s not president any longer. Thanks to people like you, we have Joe Biden, and the problems I warned you about before the election have materialized.
I don’t like the taste of antibiotics, but when my doctor prescribes them, I take them. Yahweh gave us the solution to these problems before they arose, but we refused to take the medicine. Now, we have a serious disease.
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“I am the good shepherd. I know My sheep and My sheep know Me — just as the Father knows Me and I know the Father — and I lay down My life for the sheep. I have other sheep that are not of this fold. I must bring them also. They too will listen to My voice, and there shall be one flock and one Shepherd. The reason My Father loves Me is that I lay down My life — only to take it up again. No one takes it from Me, but I lay it down of My own accord. I have authority to lay it down and authority to take it up again. This command I received from My Father.”
John 10: 14-18
