People Are Flipping Out: California Is On The Brink Of Collapse And The Panic Is Quickly Spreading Throughout The Nation! Will It Be The Catalyst Of An Impending Market Crash?
California is experiencing:
Budget Shortfalls
High Unemployment
Pensions Problems
Cities Filing For BK
Now Gas Shortgage
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.
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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 of…
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….
**ALL VALERO stations halt GAS SALES in CA!!!
**Gas prices in Oakland, Yikes! The photo speaks for itself.
** Nightmare Could Last For Weeks
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.”
**OCTOBER SURPRISE: US ECONOMY IS COMING TO A SCREECHING HALT!
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Whistler Blowers, Insiders
The recession(depression) never ended. The Titanic has already hit the iceberg. Varying rates of sinking make no difference in the end.
This is your “hope & change” you bunch of idiots asked for. you reap what you sow. I agree with a previous poster about hitting the iceberg and already sinking. .this is inevitable WORLDWIDE. It’s just a matter of time.
If you look at the red county / blue county you will find that California is firmly in the red. The blue counties are where the MASSIVE vote fraud takes place. Understand that the blue voters in CA are mostly dead people. California is like the rest of the country. People need to understand that the reason that they say “As California goes, then goes the rest of the Country” is because this is where the bankers test their BS. I was born and raised in Kansas and have been all over this country and I can tell you that 90% of California feels just like “flyover country”. Except it is sunny 80% of the time.
imagine what would happen if they lost the ability to use their cell phones…
ROFL
Where is gas $2.94 a gallon for regular? What state is that? In orlando, ur lucky to find it for $3.60.
Alaska gas is $4.09 a gallon for regular.
“The move in oil in the past week alone has almost entirely wiped out the most recent stimulus.”
Bitch please: The move in oil over the last month was down 10%. WTI dropped from almost $99 to $89.
So if you want to start a panic, at least start your article with a true fact.
Anyways, when OIL was below 2 dollars, its not that Americans were doing anything spectacular to change the world. Majority were just surviving, worse doing corporate slavery and the rest playing video games, buying the Iphone 5 garbabge and trying their luck on x factor.
Do you really think the universe will care for such human beings. I don’t find the reason for panic…let is go past 10 dollars…No OIL Shock can shake a sincere, honest man. Thats the universal law. Its guaranteed. The division between good and evil will be visible now.
Oh for crying out loud! People in CA are NOT flipping out. They are simply shelling out more money for gas. If a gas station is closed or has shut down the pumps, they simply drive to another one. They are all in very close proximity…some have 3 to one corner…..more rumors and exaggerated reports. There is NO panic, nothing is about to crash….we survived the gas shortage and high prices of the 70′s…we will survive this one. Please stop with all this fear-mongering….it’s like the USA is becoming wimps…crying over everything and posting ludicrous stories about anything…..MAN UP!
I went to Costco here in NorCal 30 minutes before the store opened and the gas lines were 20 cars deep for 12 pumps (6 lines). People weren’t freaked out but were making sure they got gas early. People I talked to were concerned that they would have supply issues. Costco gas is usually busy but nothing like that.
The Exxon refinery that helped cause this tide of events is back online. Relax, the end of the world has not yet begun. Another refinery which sometime ago caught fire is coming online soon. All we need is a bit of patience. It’s the free market system of supply and demand causing high prices… am going out now to fill up my doomsday genset.
I am in NoCal and I hit the gas station and topped off both cars and filled an extra 20 gallons in my back up cans. Could they shut down the pumps to a trickle? paid $3.99gal last week $4.79 today. This is no good. The Bay Area has mountains all around ad the commutes are long. This will kill restaurants an business that rely on non-discretionary spending. This is litmus test and a possible October Surprise with Obama riding to the rescue.
People in Caleeforneea are ‘flipping out’? Ever read their online newspaper and comments from the people that live there? It’s not a very long trip.
It only gets bitter from here. Oblame-ah, along with the Banksters, and most of the criminal congress, deserve prosecution and imprisonment for life.
Don’t expect to see much changing before the Election…. No politician is suicidal.
After the Election expect all hell to break loose,it will usher in the NWO that has no remorse.
- The only freedom you have now is the freedom to leave America soon that freedom will be taken from you.
This is a product of the Bush Family Evil Empire! The BFEE along with Dick Cheney and the Koch Brothers are manipulating gas prices to make President Obama look bad. I expect at any time now that Progressive, Liberal, Democrat Governor Gerry Brown to evoke the power of the California Air Resources Board and levy a new tax to reduce gas prices.
You are better off spending some of your money as the banks pay nothing to you in interest. If you buy storable items you will come out ahead as the prices are rising rapidly. Paper towels, toilet paper, razor blades, q tips, kleenex etc. The more you buy the more you will save.
give me some good news you asswipe
And that makes you nor them better than us!Lol!
Only lol, the other stuff I don’t know why it came out. I said that over an hour ago.
This is not a democrat or republican issue. Both sides would have done the same thing. Obama and Bush were both puppets to the globalists that are engineering the who mess. McCain would have done the same thing. So would Hilliary and so would Palin. So will Romney. This whole mess is brought to you by the people that said we had to bail out Gold in Sacks et al. It’s all being done by design. This country has to down like the rest of the world to bring in the New World Order. We have to realize this first, or we can’t do anything to stop it.
FEAR!
Yep, and you only have Clinton to blame. The guy who removed the policy put in place to prevent an ecconomical meltdown. With all that America is doing around the world, I think the rest of the world would cheer if America went down the plug hole.
And that makes you nor them better than us!