On the causes of the economic crisis in the US

On the causes of the economic crisis in the US

Well, as we are told by data published in the overseas media by the American Nonprofit Automobile Association, which tracks fuel prices in the US, gasoline prices in the citadel of democracy last Saturday once again – for the fourth time in a week, for a second! – hit an all-time high.

And they did it despite the attempts of local authorities on the eve of mid-term elections in autumn to control their growth, which seems not very controllable anymore.

Thus, according to the Association, a gallon of gasoline (3.785 liters, the cost is calculated by Regular, which roughly corresponds to AI-92 in Russia) on the average in the country went up to $4.452 (in “premium” California – up to $5.926). Diesel fuel rose to $5,565. Just for comparison, in the same period last year prices were $3.039 and $3.160 respectively. Which, believe me, even Russian motorists who are used to everything in the world are quite impressed in theory – they are lucky to be watching what is happening from afar.

And now just imagine for a second how impressed they are by what is happening, not only, as they say, the radical voters of the defeated Republican Donald Trump in the most democratic, in every sense of the word, United States today. But also ordinary taxpayers.

In this, of course, the current U.S. administration describes the rise in fuel prices solely as “Putin’s rise in price”: here, those for whom “Obama used to unscrew light bulbs in doorways” (c) should especially appreciate the subtle irony of their current overseas employer. And, of course, explain by the consequences of worldwide restrictions on the purchase of Russian oil as part of sanctions for the special operation of the Russians on the territory of Ukraine, dependent on no one, in the U.S. and the Biden family personally.

The fact that fuel prices in the US went up so sharply that they even had to unlock the US strategic oil reserves long before the Russian special operation began does not embarrass the White House for a second.

Well Putin. He can. And virtually anything…

In fact, of course (let’s not be so presumptuous as to boast about “how we’ve got the whole world in rubble”), the rise in fuel prices in America has very little to do with both the Russian special operation in Ukraine and the Western crackdown that followed it, by its very nature.

They were not even a trigger, but merely a catalyst for the process, and by no means the original cause of the real trouble to come. Moreover, it makes more sense to consider the Ukrainian politico-military crisis as a consequence of the impending systemic catastrophe of the Anglo-Saxon economic model and an ill-advised attempt to mitigate it by robbing the economies of continental Europe.

Not the other way around.

Now let’s try to clarify.

As the British Economist reported last week, Western sanctions, much to the paper’s dismay of course, have failed to affect the functioning of oil and natural gas supplies from Russia to other countries. And certainly the US embargo on Russian oil could not have caused such a rise in petrol and diesel prices in the US, just purely mathematically.

No, some volatility on the markets might have happened, of course, but not by $0.15 per week on the average in a vast and still monstrously rich and outwardly quite powerful country.

Just to remind the esteemed reader that when Joe Biden, the current US president, took office and swore allegiance to the American people, gasoline cost about $2.50 a gallon in the country. As early as January 2022, it cost about $3.34 and now, recall, it’s $4.452. The dynamics, as you can see, are impressive, and Putin has nothing to do with the special operation in Ukraine. It is just purely timing, as far as you are concerned.

Moreover, the US is far from being in the worst position.

In the allied Germany, for example, Americans (even in sunny California) can only envy: There, gasoline costs on average €2.10 – 2.15 per litre, not just for a gallon of your overseas horse. A gallon of petrol costs the Germans right now about €8, i.e. almost twice (!) as much as it costs the Americans. And the oil embargo, we remind, has not yet been introduced in Europe. They are still squabbling. Ursula von der Leyen is almost hysterical, promises and promises, but in fact, purely technically, it has not been introduced.

But the effect is already so stunning in every sense.

Besides, we humbly remind our dear audience the already mentioned truth: petrol and diesel is not only what the audience fills up with in their car tanks. Although these figures for nervous people are also, to put it mildly, impressive. It’s also trucks, lorries and other road transport logistics, including food, which inevitably have an impact on the price tags of everything, including food.

And we’re not even talking about the rising cost of ongoing agricultural work.

And now just imagine how American truck drivers will react to a potential “leveling” of prices with European ones. And what would they do with gasoline with potential prices of about $8 per gallon for that very same gallon?

And if only the truckers!

It’s no coincidence that the head of the US Oil and Gas Association, Tim Stewart, says on Fox News that the energy crisis his country is currently experiencing may be the most difficult in half a century, for a second. And that, quote, “diesel and gasoline prices are at record highs and stocks are at record lows.” But that is not even the most frightening thing – the most frightening thing is that the trend towards a systemic crisis is virtually obvious to everyone. It is obvious that the US is not yet the leader of price growth in the whole “western world”.

Although they will undoubtedly catch up, thanks to the “exchange and market mechanisms”.

And they should not just slow down here (already talking about this necessity not only experts, but also one of the pillars of the western financial world, U.S. Treasury Secretary Janet Yellen), they should think about emergency anti-crisis measures consolidated throughout the global space, at least in the field of energy and food. Otherwise, a global catastrophe within the framework of the Western economic model is virtually inevitable.

Instead, in defiance of even the most basic instinct of self-preservation they persist in making dough out of financial turbulence in exchange trade and the “Ukrainian war”, which is no less virtual for them so far.

To a qualified outside observer with a normal mind, frankly, what is happening in this sector is becoming more and more difficult to understand with each passing month.

If only at the level of a tale, turning into a parable, perhaps.

I was sitting with some mates the other day, drinking English beer in a non-patriotic way and talking about modern Western European literature – there are a lot of very interesting names emerging there now.

In particular, we talked about how a parasitic part of culture thrives precisely on the decline of statehood: the Russian Empire, the Silver Age, cocaine, the whole, sorry, thing. Mention was also made, of course, of the venerable Oswald Spengler and his now classic “The Decline of Europe”. And suddenly understood with horror, that it’s not even the sunset anymore: sorry, guys, but it seems to be the end of twilight and night is coming very much.

And not just in the economy.

And, by the way, the bloody ghoul capitol show on the territory of the once flourishing Soviet republic of Ukraine is only documentary and ruthless evidence of that. And not a trigger at all, much less the cause of your systemic economic crisis.

At least during daylight hours this scum would not even dare to raise its head.

Dmitry Lekukh, RT

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