Fuel Mileage in the Trucking Industry

The good news is that the financial rescue package for Greece is being finalized and should be passed this week. The loan will allow the Greek government to avoid the immediate default on its financial obligations. The bad news is that the cuts the Greek government made in its budget will serve to drive the Greek economy further into recession. The good news is that other European countries are also working on austerity budgets to bring down their debt. The bad news is that no one in Europe is doing anything to bring these countries out of recession, which is what is causing the debt problems The good news in the US is that unemployment dropped some more. The bad news in the US is the price of gas increased some more. The good news is that the politicians now recognize the effect that the gas price increase has on the American public. The bad news is that no politician has a workable solution to the problem. The government's solution to the problem is to increase the fuel mileage of cars, which get 28 MPG. The problem is that is open road mileage. The majority of automobiles is driven in the city and gets maybe, two-thirds of that mileage. Another problem that is not being addressed is Over-The-Road semi-trucks. These trucks get six and a half miles per gallon. The last thing done to increase efficiency of the trucks was to put a deflector over the cab to deflect air over the trailer. That was adopted back in the 80s. Meanwhile the railroads have been working continually to increase the efficiencies of both their practices and equipment. Perhaps the trucking industry should look at the railroad industry and try to adopt some of their technology. If mileage on these trucks could be improved to ten miles per gallon, a million gallons of fuel a day would be saved. Someone had better do something because: Depression is coming.

United States Fuel Crisis

Depression is coming!

Analysts are predicting that the price of gasoline will hit the $4.00-$5.00 range by this summer.  At present the price of gasoline in the Midlands is around $3.50 a gallon.  It is already $4.00 a gallon in California and many major cities of the United States.

Consumers, when faced with rising gasoline prices, slow their spending.  This causes a contraction in the economy.  Actually the consumers don't stop spending.  Now their discretionary spending money goes into their gas tanks.

If it was just gasoline that increased in price, there would be just a minor blip in the economy.

The price of diesel fuel runs 25 to 50 cents a gallon more than that of gasoline.

Farmers use diesel fuel in their tractors to plow fields, seed, cultivate, and harvest their crops.  Diesel trucks haul the crops to market.  Diesel trucks and diesel powered trains haul the crops to manufacturers.  Diesel trucks and trains haul the finished product to merchants.

When the price of fuel increases, everything in the supply chain increases in price.

The price of diesel in Europe is already at its historic high.  And much of Europe is in a recession.

In the lower right of this blog is a news widget producing news concerning, "diesel price".  Most of the information being produced presently is news concerning the price of diesel fuel overseas.  As the price of diesel goes up here in the United States, more US news will be produced on that widget.

Keep an eye on the stock market widget.  As the price of diesel fuel increases, the stock market will drop.

An increase in the price of gasoline from four dollars a gallon to five dollars would be a twenty percent raise.  Remember that in 1929, it only took a twelve percent drop in the stock market to start that depression.

Depression is coming!

Nero watched as Rome burned.  European countries are watching as Athens burns, and wonding if they will be next.

According to Reuters, Greece has been in a recession for the last four years, and things do not look any better for the upcoming year.  The Greek economy shrank 6.8 percent in 2011,  unemployment is at 19% and poverty at 20%.

If this is not a depression, then what is?