Government interference in the economy has long been something anyone who knows even an iota about economics has warned about. Now, regulations could cause oil prices to skyrocket and trigger a global economic collapse.
Oil prices could skyrocket to over $200 per barrel, according to a report by RT. A research paper from economist and oil market watcher Philip K. Verleger predicts that if this happens, a worldwide economic collapse of apocalyptic proportions would occur. According to the paper, there could be a shortage of low-sulfur diesel fuel in 2020 as a result of regulations from the International Maritime Organization (IMO) aimed at cutting sulfur emissions. The regulations, due to take effect at the start of 2020, lower the allowed concentration of sulfur in maritime fuels from 3.5 percent to just 0.5 percent.
The only way to prevent this would be for people to stop fabricating that anyone has any authority to regulate or control them anyway. However, since humanity isn’t ready to give the illusion of control, it looks like an economic collapse is in our near future.
The new regulations have already caused many to begin to scramble for low sulfur options, but unfortunately, the current global refining capacity may not be able to churn out enough low-sulfur fuels to allow for a smooth transition from high-sulfur fuels by the world’s shipping fleet. Since people assume that others have the right to dictate rules to them, this would usher in an economic breakdown the like of which we have never seen. RT reported that the shipping industry accounts for about 5 percent of total global oil demand. Coupled with the fact that most ships burn heavy fuel oil that is high in sulfur, switching over 5 percent of total demand to low-sulfur diesel and gasoil – a distillate similar to diesel – is a massive shift that should not be considered irrelevant.
Other than disobey the “authorities”, ship-owners will have a few options. They could install expensive scrubbers to remove the sulfur, switch to low-sulfur fuels such as diesel or gasoil, or switch over to LNG. Scrubbers and LNG are generally thought to be the most expensive options, requiring capital outlays to overhaul entire fleets. These increased costs will be passed onto consumers in the form of higher prices, and with there being so slowing of the trade war between the United States and China, the final nails could be going in the coffin of the global economy.
By 2020, diesel production will need to rise by at least seven percent, according to Philip K. Verleger. That increase in production is on top of the three percent increase needed for road transport and other uses. All of it will need to be low-sulfur if you believe someone has the right to rule and others have an obligation to obey. “It is not clear that the greater volumes can be produced,” Verleger wrote in his paper. “Instead…very large price hikes may be required to suppress non-maritime use.”
Verleger does not mince words either. As the rules take effect in 2020, oil prices will spike to $160 per barrel or higher. “Economic activity will slow and, in some places, grind to a halt. Food costs will climb as farmers, unable to pay for fuel, reduce plantings. Deliveries of goods and materials to factories and stores will slow or stop,” he argues.“Vehicle sales will plummet, especially those of gas-guzzling sport utility vehicles (SUVs). One or more major U.S. automakers will face bankruptcy, even closure. Housing foreclosures will surge in the United States, Europe, and other parts of the world. Millions will join the ranks of the unemployed as they did in 2008.”
This is all going to happen without the surge in oil prices. In fact, there will actually be a collapse in oil prices, as the world descends into a global economic depression. Folks, it’s going to get UGLY, very fast when the SHTF next year.!!!!!
You are probably right.
Still I say, “To hell with it, bring it on and let’s get it over with!” Enough is enough and I am sick and tired of the gloom and doom and this expert says this and another warns that.
You people can stress yourselves out all you want to,
when you grow up you will find that no one knows about tomorrow; prepare for the worst but don’t obsess about it, live for today, your families, and thank God for that much.
Lol it’s next year every year.. Bunch of bullcrap.. All the whining and fearmongering can’t stop the machine that is America
Gee Wally…wutabout solar…or…or…nuclear?
“Peak oil is real, we are past the peak, the west is net energy negative, the entire petroleum industry is insolvent with nothing to be done about it. The bosses are lying through their teeth hoping the bad news hits somebody else…hard rationing is coming and private discretionary auto use…gone.”
How is this for extortion . . . . “Taxes are the price we pay for a civilized society.” — Mr. Justice Oliver Wendell Holmes
There is no law about paying taxes but just try not paying the IRS and watch as all hell comes down on your head.
“Civilized” much these days? Because what we need, according to women like Elizabeth “Pocahontas” Warren, is more taxes, not less.
Buy a good bicycle, a little scooter, a cart or wagon. If you have room for horses, donkey, some alpaca; now is the time to get them. Where as an old fashioned horse and wagon is a novelty, soon it might be a necessity. Think how cool it would be to start a business giving rides on your horse and buggy. The future is uncertain. But your next job could be pulling around some “fat cat” in a rickshaw. ???
B of CA,
I have a 4 year old mule(very bad tempered)
and a VERY young, large Donkey, his
testicles have not dropped yet and he is 44″ at the withers.
Luckily I have the time, money, and
temperament to deal with them.
Alpacas cost way to much here, but they are around.
I much prefer my 4WD that I can just jump into
and go. The truck can be temperamental, but it won’t drag you across a field if it gets spooked.
Boring from CA – I bet you don’t buy or stock even a small % of the garbage that you recommend here. Just blowing smoke out of your a$$.
Actually Hogg, B from CA has some very good insights. If you can’t contribute then STFU.
RW, agreed about Hogga. B from CA always makes some really good posts.
Deplorable, don’t you live in your sister’s trailer? You’re a real success story.
Na, Hog jr. lives with Hogg in a cardboard box!
Hog Jr. sounds like a troll just like his Dad. Like father like son. What a waste.
Rick Wormer: He is as full of crap as you are.
Hey Hogg, you are sure tough behind your keyboard!! Troll!
Likewise, Dick Wormer, you’re a real tuff guy typing away feverishly from your basement…I’m shakin’ in my boots!! Don’t mess with THE HOGG.
I think your in your mom’s basement and she has dinner made for you. Smh.
Hey Hogga: ????????????
B from CA is a boss around here. You’re a liddle beeotch. Deal with it.
Grundle McPenis: You’re Boring from CA’s lackey boot licker! Deal with it!
Hogga, you and your son hog jr. go f#$% yourselves. Useless trolls.
Bravetard, it’s time for you to go back to your sister’s trailer. Enough of you playing tough guy. It’s just not convincing. As a 60+ year old senior you need to get your rest. Go drink some Metamucil.
Hogga, you can bring it on any time you want. I’ve got something you DON’T want.
Yeaaah, no, I’ll pass; I don’t want you dropping your pants. I know that’s what you’re thinking. Ever see Pulp Fiction? Check it out, if you’ve got Netflix in that trailer of yours. By the way, how is trailer life? LOSER.
Lickie summa that dickie, little piggie ???
If the situation gets as bad as suspected, how to feed those animals will be the subject of the day.
Just ask the sheep farmer in Australia that is killing 500 of his stock. He loses 10-15 a day due to starvation.
It is not wise to soil one’s home.
However life is dirty, we all make a mess
as we live our daily lives. We clean up
as necessary, when it makes sense to do so.
But to make arbitrary decisions without weighing
the costs is insanity. Sorry, I just defined
Democrats, arbitrary and insane.
I have owned Diesels for many years in a boat and a car.
When the arbitrary decision was made to go to
low sulfur fuel, it was a decision designed to
destroy older Diesels, not clean the air.
I compensated by adding ATF to my boat fuel
to compensate for lubrication loss by lowering
the level of sulfur in fuel.
It is a well known trick that the EPA has no
Diesels running on liquid fuel produce a lot of soot, but other than steam, are amongst the most efficient and reliable
engines man has invented. It is a shame that Eco-nuts for almost zero gain in air quality will enforce such a cost on humanity.
I live quite safely within 60 miles of a volcano pumping out more SO2 daily, than is produced by all the worlds Diesels in a month.
I would love to see Al Gore stuff himself in the volcano to stop the emissions.
You and Kevin2 and some others here have engineering/mechanical backgrounds that give you a distinct advantage in life. Nail and Grandee know lots about gardening and agriculture. Old Guy knows about caves and a lot besides. It’s all good.
But the colleges aren’t turning out engineers like before Black Studies and the other nonsense became popular. In the meantime India and China have flooded us with M.D.s, mathematicians, scientists, and engineers.
But the whole world is going to hell-in-a-basket because of the multi-cultural mis-mash. The high IQ of the “Chosen” resulted from generations of positive Eugenics; marriage to smart successful individuals whether part of the (((group))) or not. But most were geniuses from Europe. And the (((Chosen))) have been killing off the best and brightest with the short sighted idea that they will emerge as the victors. Israel’s average IQ has dropped drastically.
The Chinese aren’t and have never produced lightening rods. We need our own engineers. We can’t import genius. And so far, we can’t create it without the original DNA.
I think it’s cool that you have a donkey. Kevin2 wants to send immigrants to the Sicilian mountains. Perhaps it would be a good idea to bring along a mule.
B of CA,
I keep in touch with my Alma Matter. I’m class of 9http://www.freerepublic.com/focus/f-news/3673804/posts0.
The only change in the requirements for my STEM degree
is the addition of a requirement for two years
of a foreign language for ABET certification.
I’d probably do Mandarin(Chinese) as I’ve already had two years
of it and could pick it back up pretty quick.
They don’t do Black or woman studies.
Very expensive school, I’m lucky my employer paid the bill.
There are still good schools out there.
Class of 1990.
SHTF doesn’t allow editing.
Rellik, isn’t biodiesel used to power the power plants on the islands? It’s not considered a hazardous substance like fossil fuel, so you should see it used on marine equipment. I’ve been making it for more than 15 years and using it in all kinds of equipment. And we’re in Wisconsin! Even adding a few percent to regular diesel will increase lubrication to pre low sulfur levels.
Last few years with diesel prices lower, biodiesel use has died off, but as prices go up, it will be a hot topic again.
Rellik, how about a tax on all the hot air produced by politicians?
Maybe it is just me; but, watching the games on the DOW today, apx. a 300 point swing low to high…. strikes me as insane. What is supposedly an investment measure and economically the platform for our economy to prosper or fail is naught but a gambler’s casino. Some fart in the political winds, some ‘talk’ between leaders; hell, a butterfly finding a sweet flower and up or down she goes like a yo-yo on a bungee cord. And just how many of us are really doing any better due to those oscillations? Hmmmm? Today it is high at the moment – near record level. This article predicts that if some fuel composition regulation goes into effect it will spill doom. And doom-porn in the media sells. It’s all a game and folks… we ain’t even got a token piece on the table to round past ‘get out of jail free’.
Don’t pay attention to financial advice or projections by anyone that is not a billionaire.
Because if they actually knew what they are talking about they will be one, everyone is just a guesser or wishful thinker that has no idea what is going to be happening any more than you or I do.
TAKE. IT. DOWN. RESET.
The Sky is FALLING !!!!!!!!!!!
I think a pice just hit me in the head good thing I had my helmet on and 10.00000000 rools of toilet papper
Back in the 1950’s and 1960’s, in a collusion of big business and gov’t, the American people were told again and again and again that nuclear power stations were inexpensive to build, they would produce so much power it would actually be too cheap to meter, and radiation danger to the public was impossible; they all turned out to be grossly untrue. They have even been sited on or near fault lines. Of course, people were never told how spent fuel rods were still dangerous, or about their extremely costly and complex disposal.
Our problem is Democrats.
We would still have problems but nearly
not so many if we rid ourselves of them!
That won’t happen as there is something called
a bell-curve. and most Democrats are on the
left side of it.
So much for MAGA.
If a nation has a limited amount of a crucial natural resource then what is it really worth? It is PRICELESS as it cannot be replaced.
We should never sell our oil internationally nor allow the international market set the price for our oil.
We should only use it domestically, and since we have an insufficient amount, use that impetus to create new energy sources.
Otherwise since oil sales support terrorism, by buying international oil, we are partially to blame for terror acts.
This is common sense. We’re facing peak oil whether you believe it or not as demand outstrips the supply.
Likewise, we should not sell our agricultural products internationally, only create them for domestic use.
The USA needs to reduce all international trade and to become true isolationists. If we did so, the USA Republic would be a utopia. We would be forced to both develop clean ways to protect the environment, create thorium reactors, and finally deal with nuclear waste in our spent fuel rod pools. Instead there is no logical solution and the fuel rods just pile up and must be perpetually cooled.
What will happen if we have an EMP and there is no cooling? We would have a series of cascading failures and huge exothermic reactions and massive radioactive isotope broadcast like 200 Chernobyls.
“We should never sell our oil internationally nor allow the international market set the price for our oil.”
Disclaimer: I’m an engineer not an economist.
Oil is an international commodity and therefore (ideally) the price is set by the world demand.
What is this “our” oil of which you speak?
That well out there in my backyard is MY oil. If you say (by force of Government) I can’t sell my oil to anyone I choose at the best price I can command then I just might let it stay in the ground till sometime in the future. Do you advocate for the Goobermint to MAKE me pump it for domestic use?
“Likewise, we should not sell our agricultural products internationally, only create them for domestic use.”
Again, Agricultural products are a global commodity.
Same argument. That’s MY wheat out there son…(I’m speaking as a freedom loving idealist here)
We can’t shield ourselves from international markets and the pressures they bring to bear on Prices.
The actions you argue for (maybe unintentionally)will not work well in the long run and will bring on much more oppressive control by the Federales….something we need less of by a factor of 1000 or more.
You don’t get it. With peak oil, it’s a limited resource that has more demand but less supply. We should never sell it internationally due this rarity. It’s moronic because the next generation won’t have it and it will put them in a terrible state. Instead that should force us to quickly find alternative sources and ony use domestic sources. Otherwise we are selling off our legacy.
It is not our responsibility to grow mammoth amouts of food to feed the world and it be better to use the land to produce goods and services that AMERICANS need. And if we did sell food, AMERICANS should set the price VERY HIGH as they cannot live without it.
This would be like demanding low prices of oil be shipped to America because we need it. The consumer does not set the price when the demand is outrageous. The seller does.
With that kind of thinking, then armament comanies shouldn’t be restricted but should sell their weapons to CHINA because China would only be too glad to acqure them! What a stupid idea but hey, the armament companies woud make more money!
Yet you want farmers to sell food to China which equals helps them!
So what you want is Government control of what are considered important resources.
Who decides what is an important resource.
History shows us that when you let Government make those decisions then most everything becomes an important resource.
“May your chains sit lightly upon you…” to borrow from Samuel Adams.
I see that profit is more important to some farmers than patriotism.
Once it was verbotten to sell strategic resources to Communist countries but I guess worshipping money is more important than security and love of America
If you can get the (usually bought and paid for) Congress to do its job and limit the strategic resources in a way that is responsive to the people, I could go with you on who to and what to sell and when.
But I’m not ready to cede those decisions and my rights to pointy headed bureaucrats at the Dept of Whatever.
I know a guy that mows his fields and bales those big round bales. Every year in the spring he applies expensive chemical fertilizer To keep the yield up every year he must increase the amount he buys. But he sells his hay. Every bale he sells is at least 500 pounds of organic matter that leaves his farm. I tried to explain that if he got livestock and fed that hay on the fields that it was harvested from he wouldn’t need any chemical fertilizer. That when he sold hay he is selling his topsoil. If he never sold hay and fed it back on the same place his yield would improve. He is too pig headed to listen.
hay idiots the closer to home a product is made the less it costs oil will be coming from the us of a not the middle east morons
Petroleum is used for many things beside making fuel. So an inadequate amount of petroleum is going to totally alter agriculture.
You can vastly increase yields by various methods, but these are labor intensive versus various devices semi-automating the process. Small scale farming can get these high yields but you better have a tribe to harvest them.
The most promising biofuel is algae based but who knows if we will ever get a sufficient return on investment and develop a high enough yield?
Solar is expensive. Passive solar is not.
Believe it or not, with technology improvements, combustion using rocket science yields excellent output and the efficiency is so high that the pollution emmisions are low. We might grow poplar which happens very fast to harvest and many building using hobbit homes and other sheltered earth tech and similar ideas could dramatically lower energy needs as the internal temp is a constant 55 degrees F. This means minimal heating and built in air conditioning. However people prone to mold allergies could never live in them.
It is the same old science that allows root cellars.
We can similarly power vehicles as they did in WW1 and WW2 with wood-gas generation. Essentially you create a combustion chamber that is designed to have insufficient oxygen (creating charcoal) and a gas is emmitted and that replaces your fuel. This old proven tech could also run a generator. Tree huggers don’t like itbecause they fear deforestation and pollution, but we should be exploring ways we could grow forests for fuel and reduce emissions.
Then the by-product is charcoal which has many uses and is also a soil amenity. And it’s entirely possible to use this at the small farm level NOW but requires a dedicated plot of land using succession plantings so regular harvests canbe staggered. So far it seems poplar is the fastest growing with highest BTU produced and the relative ease of care.
There’s a late night, public access tv infomercial, where you’re supposed to buy a nostalgic dvd of neat businesses, which no longer exist.
From the looks of it, there are many examples, where olden people would have a high(er) quality of life.
The problem is not the lack of knowledge or of opportunities, but with people who waste and dissemble.
Are you handy, or can you do anything good? You have your own ways, and these are inventions.
What about people who are not handy and can never do anything good. Here is the actual source of your crisis.
THE EARTH IS FUCKING FLAT… FLAT… FLAT… FLAT.
Regulation already IS causing global economic collapse, it’s just collapsing slowly. The economy of this planet is a very large and complicated thing, and it is slowly dying, mostly because of bureaucrats and bankers. When people lose faith in their “currency”, that is when things will go to ramming speed. Folks will find something else to use as a medium of exchange, they always do, and then economies can begin again. Govt. parasites are at the base of this rot.
YouTube on a censor storm, I notice all the rocket hitting the dome videos are all gone except one crappy video. All of the big to do about flat Earth has died off it seems. I guess that settles it, we live on a flat ball.
I just last week moved the canned goods to the ‘canned goods room’ so all the canned goods are in the same bedroom used for this. YEP—I have a room for this, not a shelf!!
I have these stocked by ‘best by date’ and I just started eating these foods from ‘best by date’ of 2012–haven’t found one bad can yet, meaning they are maybe 8 years old.
I was one that thought this was a waste of time, resources, and money FOR A WHILE.
I now am thankful I paid notice to the doom and gloomers years ago.
I’m ready for a long time when this global drought causes food prices to double.
I am blessed in so many ways and know it.
Standard biodiesel uses food crops to make energy. But of course this means undergoing a chemical process to create the diesel. Critics hate the idea if turning food products into energy as does the oil industry.
Heck you can buy a heating system that runs on dried field corn. This is not new tech but at least this skips this step.
Rather than feed the world, it’s smarter to find a DOMESTIC use.
Just like it’s better to figure out ways to transform soybeans into useful products as Henry Ford was proposing rather than feed asians who then have become the slave labor of China, or the Japanese who directly threatened American economic interests from 1975- the present.
Wake up. There are larger issues at stake then just making a buck personally.
Henry Ford found a way to make plastic for soybean oil. Why in the world are we still making plastic from oil???
This is what I am talking about. We could severely cut our dependency on foreign oil imports. And we should. Our goal shoud be 100% self-reliance. That is what prepping is all about. That leads to security.
If you are dependent on selling your products internationally, then you need to change your ethos or else you are enslaved like drug addiction to this relationship.
We should do what is best for the country as patriots and not just trying to make a buck selfishly.
If I were the President, rather than subsidies to offset potential tariffs, I would BUY the soybeans for domestic use as a precious natural resource. Then figure out new ways to use them.
I would greatly add to the national strategic reserve of many products. That helps set the price and guarantees a profit.
I sure would NOT foster international trade. Rather the most stability economically is for all nations to develop their own domestic economy as capitalists so their workers make the best income and have the best benefits.
Capitalism is domestic competition and never international. You can never compete internationally due to local undercutting of natural resource prices, low wages, low benefits, and currency manipulation.
Reverse the situation. Let’s say America had 1.3 billion in our population with a huge military who eat soybeans and China was 330 million in population and grew the soybeans. That would be DANGEROUS because if China cuts off the food supply, my people and soldiers starve.
See? America has a precious resource in food. If the government bought up all crops, the government could raise the price to TRIPLE and the world would have to pay as the American government would have a near monopoly.
Any commodity that is desperately needed could be totally bought up by the government. At which point, the value is a gigantic asset that we use DOMESTICALLY to value our currency and THEN it becomes true money.
Ancient Egypt effectively did this using wheat but they lacked the military power to oppose the Roman empire.
In effect, since we have ABUNDANT natural resources, by selling them to the government, in exchange for currency, it creates money. And that money is ROBUST as a financial instrument with a measurable value.
The government could then say that they would sell a partial allotment of domestic steel to domestic automobile manufacturers, but at a profitable rate slghtly favorable to the government but still favorable to all parties. This would stimulate the economy.
Only in rare circumstances would excess steel be sold and only at an exorbitant rate that the USA government sets, not international trade rates. They would be forced to buy it or else do without.
Using that model, we need no Federal Reserve and we need no international sale of government securities.
Using debt forgiveness in stages of $1,000 increments, we write off debt like home mortgages and college loans and the banks get write offs. Everyone wins. You can’t pay people more income as that is inflationary but you can cancel domestic debt slowly which increases net worth. This means no tax is owed yet each consumer has far MORE DISPOSABLE INCOME which they could invest or use to buy goods and services.
And that is not inflationary but proven sound business practices.
However, what we could do is sell very expensive government securities to any who are allies. Otherwise they would never be our allies and not defend them.
In ten years, the USA’s economy would be the finest, most sound economy with near zero unemployment through such actions and the military would not be an economic liability but generate PROFIT because they would be totally under our control but effectively very expensive mercenaries.
People could voluntarily invest in the now sound MONEY based government securities in exchange for a pension and then the economy would be extremely stable.
What makes government securities based on the dollar(that exist today) so unsound is it presently is backed by nothing but empty promises.