history, economics, and current events

Diesel Crack

Diesel Crack

Also known as the Diesel Crack Spread, Diesel Crack is the price difference between the price of diesel relative to the price of the barrel of oil from which it was manufactured. The higher the spread, the higher the price of diesel relative to crude oil. Crude oil is “cracked” as part of the refining process to create diesel, gasoline, jet fuel, et cetera.[1]

The spread has never been $100 and it is over $102. Basically, diesel is expensive and it is about to screw over the economy by getting more expensive and making everything else more expensive (farmers and truckers use diesel to grow and ship food). Gas is $3.59 per gallon for 87 non-leaded with 10% ethanol at one of the Love’s gas stations in Tupelo, MS. Diesel is $5.68 per gallon.[2]

Presumably, the US government has been selling oil from the Special Petroleum Reserves to keep prices from rising further, but reserves are already near historic lows and are only supposed to be used in national emergencies. As seen below, the SPR has been used quite a bit since the 2020 covid terrorist attack.[3][4]

Bombing Iran and disrupting oil trade routes has resulted in even more of the SPR being drained to keep the most armed society in history placated. I guess if I were a politician being blackmailed by Epstein to support Israel and the larger British Empire, I would consider not being exposed as a pedophile a national emergency too.[5]

At this point, the most generous argument for Trump is that he is just as senile as Biden. Maybe that is why they both supported Fauci.

To quote the second of Cato’s letters, The Fatal Effects Of The South-Sea Scheme, And The Necessity Of Punishing The Directors, published on November 12, 1720,

“As never nation was more abused than ours has been of late by the dirty race of money-changers; so never nation could with a better grace, with more justice, or greater security, take its full vengeance, than ours can, upon its detested foes. Sometimes the greatness and popularity of the offenders make strict justice unadvisable, because unsafe; but here it is not so, you may, at present, load every gallows in England with directors and stock-jobbers, without the assistance of a sheriff’s guard, or so much as a sigh from an old woman, though accustom’d perhaps to shed tears at the untimely demise of a common felon or murderer. A thousand stock-jobbers, well trussed up, besides the diverting sight, would be a cheap sacrifice to the Manes of trade.”[6]

The good news is that the Constitution was made for hard times. The bad news is that the hard times have only just begun.[7]

2-Year Treasury Yield

2-Year Treasury Yield