As the war on Iran enters its ninth month, the price of oil continues to rise, but the crude itself is no longer the best measure of the economic troubles.
The biggest issue isn’t gas because that’s an elastic type of commodity. The real problem is diesel because it’s inelastic. For example, a farmer can’t just plow half a field or a truck can’t deliver goods part way. And that’s where the real problem lies, there’s a significant shortfall of diesel, and there’s no way to make that up . Europe in particular is in a really bad situation because the US just forced Europe to release diesel reserves to stabilize market prices before midterms. But once that’s gone, and prices actually start climbing that’s when the trouble starts.
And I think nations like Spain will have difficulty, these are the countries I put in the Western bloc that’s making ideological decisions. The countries I expect to adopt are in the Global South.
Europe in particular is in a really bad situation because the US just forced Europe to release diesel reserves to stabilize market prices before midterms. But once that’s gone, and prices actually start climbing that’s when the trouble starts.
Of for sure, I just spoke personally. Even then, prices have continued to rise so much since the pandemic that it’s still difficult to know what is the cause of incremental inflation or fluctuations of diesel prices. I imagine that the conflict will be felt much more as reserves dry up.
The countries I expect to adopt are in the Global South.
Definitely, I can’t help but feel that our current decade is the deciding shift and that the decades to come really will belong to the “third world” this time. We’ll see on the 100 year mark of the Bandung conference how well we fared, but I am cautiously optimistic.
Oh yeah, Australia is particularly screwed because it has practically no refining capacity, and imports most diesel from occupied Korean refineries as I recall. So, when supply gets tight, they’re obviously going to hold back exports, and there’s really nothing else available.
If we stopped allying with the great satan maybe we could get some more easily. And shit maybe nows a good time to i dunno explore renewables and electrify more if possible
Yeah seriously, maybe the energy crisis will get people to rethink things. Amusingly, the US is now contemplating a full retreat from Asia which would involve abandoning occupied Korea, Japan, and Australia. Should that happen, then there would be a pretty rapid political shift in Australia I would imagine.
The biggest issue isn’t gas because that’s an elastic type of commodity. The real problem is diesel because it’s inelastic. For example, a farmer can’t just plow half a field or a truck can’t deliver goods part way. And that’s where the real problem lies, there’s a significant shortfall of diesel, and there’s no way to make that up . Europe in particular is in a really bad situation because the US just forced Europe to release diesel reserves to stabilize market prices before midterms. But once that’s gone, and prices actually start climbing that’s when the trouble starts.
And I think nations like Spain will have difficulty, these are the countries I put in the Western bloc that’s making ideological decisions. The countries I expect to adopt are in the Global South.
Of for sure, I just spoke personally. Even then, prices have continued to rise so much since the pandemic that it’s still difficult to know what is the cause of incremental inflation or fluctuations of diesel prices. I imagine that the conflict will be felt much more as reserves dry up.
Definitely, I can’t help but feel that our current decade is the deciding shift and that the decades to come really will belong to the “third world” this time. We’ll see on the 100 year mark of the Bandung conference how well we fared, but I am cautiously optimistic.
We’re living through weeks when decades happen to be sure.
Meanwhile recently found out my countey australia is the worlds largest importer of diesel.
Not per capata but in actual terms. We have a lot of farming and mining that relies on it
Oh yeah, Australia is particularly screwed because it has practically no refining capacity, and imports most diesel from occupied Korean refineries as I recall. So, when supply gets tight, they’re obviously going to hold back exports, and there’s really nothing else available.
If we stopped allying with the great satan maybe we could get some more easily. And shit maybe nows a good time to i dunno explore renewables and electrify more if possible
Yeah seriously, maybe the energy crisis will get people to rethink things. Amusingly, the US is now contemplating a full retreat from Asia which would involve abandoning occupied Korea, Japan, and Australia. Should that happen, then there would be a pretty rapid political shift in Australia I would imagine.