More Problems Coming Down the Road
By Jim Bauer
@porwest (94568)
United States
October 28, 2022 3:27pm CST
If the supply chain and inflation issues aren't already bad enough, get ready for potentially more pain as we now learn that there is potentially a diesel shortage coming.
Of course, some of you may be thinking, "No problem. I use regular gas."
The problem is that the semis, the trains, and the cargo ships that all move goods around all run on diesel.
If they don't have fuel to run, they stop.
Beyond that, what happens when supply tightens? The price goes up. So, diesel prices, which are already high, could potentially go much higher. And when transport is such a large part of the price of goods—we will get more inflation.
And what happens when goods aren't on shelves? Again, high demand, low supply—it adds to even more inflation.
Folks, my aim here is not to spark fires on Biden just because he is not a republican. I just think it is important that we be honest with ourselves about what is happening now, and what has been happening for the past two years, and understand that we need to care about that.
We are already stuck in a supply chain rut and dealing with super high inflation and the threat of a looming recession. Something like this would have a significant impact on all of our bottom lines, and I think, even our way of life.
It is something to think about and to take seriously.
8 people like this
8 responses
@moffittjc (122112)
• Gainesville, Florida
29 Oct 22
Can you explain why we have a diesel shortage but not a gas shortage? Diesel is quicker and easier to refine than regular gasoline, so why is it in short supply but regular gas isn't? It all comes from the same oil.
1 person likes this
@moffittjc (122112)
• Gainesville, Florida
30 Oct 22
@porwest Thanks for the explanation. I knew it was a complicated situation causing it, but I was mostly curious as to why there’s a shortage of diesel but not gas.
1 person likes this
@moffittjc (122112)
• Gainesville, Florida
30 Oct 22
@CarolDM Thanks Carol. I’ll read what Tucker has to say.
2 people like this
@porwest (94568)
• United States
29 Oct 22
I don't think there is one specific cause. It's a multi-fold issue, as are most of the issues surrounding our supply chain right now. It is a combination of factors leading to what we have before us now.
For example, part of the reason we have empty shelves is because we don't have workers on the production lines making things. And then when we do make them we don't have enough truckers on the road to deliver them.
A similar situation applies to gas and oil and of course, diesel.
There was also that deep freeze last year in Texas which cut off refining there which caused a slow down in production. There is also still a shortage of drivers driving the tanker trucks delivering the diesel to gas stations. There are also certain policies being imposed and enforced by the federal government through the EPA and in the interest of their "green energy" desires that are making it more difficult to produce the diesel and driving costs to produce it up.
Like I said, there are multiple reasons.
1 person likes this
@kaylachan (73496)
• Daytona Beach, Florida
28 Oct 22
Exactly. The ripple affect is possibly chatostroffic. At the same time, we don't know it, yet. We'll have to see what happens with this fuel thing.
1 person likes this
@porwest (94568)
• United States
28 Oct 22
I think we will see it. It just seems inevitable at this point with the current administration literally asleep at the wheel.
There is a side of me that wonders if we are actually headed toward another major depression. The numbers don't quite add up yet.
But hell, Biden's good at getting us back to decades ago levels—why not take us all the way back to The Great Depression?
1 person likes this
@kaylachan (73496)
• Daytona Beach, Florida
28 Oct 22
@porwest Well, I doubt he has the power to crash banks and cause them to stop working, but another session, sure. I see that happening before the term was over.
1 person likes this
@porwest (94568)
• United States
29 Oct 22
@kaylachan It is not that HE has the power to do that. But he does have the power to influence the economy in dramatic ways, and so even if he can't pull a trigger, what he DOES can have a direct impact on what HAPPENS.
It is like I always say of economies. Presidents do not make economies. But their policies certainly do IMPACT economies. And so while the two things are not directly related, they are still indirectly related, and certain things that happen in economies can be directly corresponded to the policies presidents make.
1 person likes this
@RebeccasFarm (90741)
• Arvada, Colorado
31 Oct 22
And we know who to blame for this
1 person likes this
@LadyDuck (472386)
• Switzerland
29 Oct 22
We need to replace many politicians also here in Europe. Their stupidity is causing only problems and a very high inflation right now. The British have now one who looks better than the two previous. Italy finally got rid of the socialist government. Let's see what happens.
1 person likes this
@porwest (94568)
• United States
29 Oct 22
It all depends. The UK has never been on the forefront of a "great economy." It's been stuck for decades, so the only thing that would fix that would be a dramatic shift in how the UK operates its economy. I have never felt they really want it, which is a large part of the reason they don't do it.
Still, this new guy has a massive opportunity to make the UK great again, and let's hope he does it. Because the UK is still an important player in the free world and we need them to do well.
We will just have to wait and see.
1 person likes this
@Nakitakona (56484)
• Philippines
11 Dec 22
No wonder why the price of diesel is soaring high here. The law of demand and supply us taking her course. Thus when the supply is low and the demand is high, the price is high. But when the supply is high and the demand is low, the price is low. Am I not right?
1 person likes this
@Nakitakona (56484)
• Philippines
19 Dec 22
@porwest It's a good for I do still remember such law on supply and demand when I learned it in college.
1 person likes this
@RasmaSandra (81617)
• Daytona Beach, Florida
28 Oct 22
Every Time I hear about problems with gas for cars I am glad I no longer drive and do not have a car,
1 person likes this
@porwest (94568)
• United States
29 Oct 22
But again, this is a problem that will impact you whether or not you drive. If the price of diesel rises due to high demand and low supply, you will pay for it in the form of higher prices for everything you buy because transport costs are a part of the cost of everything you buy.
Drive or not, you will feel the pain.
On top of that, even if you don't drive, you still have to get around. Uber and Lyft and taxis will all charge more. And the busses all run on diesel too. Either they will run less busses or charge you more, making you have to wait longer to get a ride.
Just because you don't have a car yourself does not mean you are immune to the problems facing any other form of transportation.
You will still suffer pain. It will just be coming to you in a different way.
It's like the renter who says, "What do I care if they raise property taxes. I don't own a house." But of course if the property taxes go up, your rent goes up, because landlords do not pay property taxes ultimately. The renters pay for it in their rent.
1 person likes this
@porwest (94568)
• United States
31 Oct 22
I still think, and it is a tough subject for me, that we need to start holding press more accountable for what they report and HOW they report it. The free press is important, but it can't be so free as to misinform the public or construe the truth, or make the story so misleading that one can't get the truth.
1 person likes this
