Especially when supply > demand? The U.S. Energy Information Agency (what, you didn’t know we had one?) estimates that gasoline consumption in the U.S. has fallen by 75% since 1998:
U.S. “gasoline consumption” – as measured by the U.S. Energy Information Administration (EIA) itself – has plummeted by nearly 75%, from its all-time peak in July of 1998. A near-75% collapse in U.S. gasoline consumption has occurred in little more than 15 years. Before getting into an analysis of the repercussions of this data, however, it’s necessary to properly qualify the data. Obviously, even in the most-nightmarish economic Armageddon, a (relatively short-term) 75% collapse in gasoline consumption is simply not possible.
Considering the fact that the U.S. population has risen in the last 15 years, a 75% decline in gas consumption is probably not likely. So how did the EIA come to such a conclusion?
…the government chooses to measure U.S. gasoline consumption in a very odd manner: by measuring the amount of gasoline entering the domestic supply-chain rather than by measuring actual consumption at the other end of the supply-chain – i.e. “at the pump”.
This is the equivalent to the auto manufacturers recording a new car as ‘sold’ the second that they ship it off to the dealer. Why does the government calculate the numbers this way?
Why does the U.S. government, which (among other things) leads the world in the manufacture of statistics not produce any simple/direct measurement of gasoline consumption? How can the St. Louis Fed producenearly 100 different charts on gasoline and diesel prices (for any/every price-category which can be imagined by these statistics geeks), but not a single chart on gasoline supply/demand?
There are several reasons for this unbalanced, anomalous, and simply absurd statistical methodology. First of all; the reason why the U.S. government produces a near-infinite number of charts on prices is because prices are what the Gamblers (i.e. bankers) use as the basis for their $100’s of trillions in gambling in the rigged casinos which the bankers call “markets”.
While supply/demand data is of utmost importance in the real world; the banker-gamblers don’t dwell in the real world. As regular readers already know; their derivatives casino, alone, is roughly twenty times as large as the entire global economy. To the bankers; the “real world” is nothing but fodder for their insane gambling.
This is what we see today in the U.S.: a gasoline market which had been deliberately-and-dramatically over-supplied with gasoline at the wholesale end of the supply-chain (the refineries) has now practically ground to a halt.
Wait, if the supply of gasoline is greater than the demand, then the price should be falling right? Not if the Fed has anything to say about it:
But it can’t hide the fact that U.S. refineries have nearly stopped producing gasoline for the most-motorized society/economy the world has ever seen.
Readers who are stubbornly faithful to the plethora of pseudo-statistics which the U.S. government uses to hide this collapse may have been skeptical of my original denunciation of the “U.S. economic recovery”. They may have been more skeptical with assertions that this Wonderland Matrix of lies is being used to hide a Greater Depression.
However, there is no further room for skepticism when official, government numbers indicate a near-75% collapse in U.S. gasoline consumption over a mere 15 years, and a 65% collapse in consumption since the start of the (supposed) Recovery. Numbers such as this can only be encapsulated with acronyms like “DOA”.
When we look at the EIA’s “gasoline consumption” numbers, and when we see the St. Louis Fed’s chart of the U.S. velocity of money (heartbeat of the U.S. economy); we don’t see an economy which is dying. We see an economy which is already dead.
The velocity of money is simply the number of times that a dollar changes hand. Since the velocity of money is stagnant, this means that the economy has ground to a halt. Thanks
Truth be told, things wouldn’t have been much better under President Romney either. After all, if they really represent two different parties who are enemies, why would this happen: