Running on Empty, Part IV

Source: Contemplations on the Tree of Woe.

I have mentioned several times that one of the consequences of the war in Ukraine may be a fundamental restructuring of the global economy — to the disadvantage of the U.S. and Europe. The present essay explains (better than I could) how this might happen.

7 thoughts on “Running on Empty, Part IV

  1. It would appear to me that the mere psychological effect of cutting off supply is enough drive hyperinflation on its own. Cancelling the XL pipeline and a Russia embargo for starters has driven gas prices through the roof but Biden is only “monitoring” it because it fits into his green pipe dream, screw the public’s plight with affordable basics due to exorbitant supply costs. Now that is home grown restructuring that makes America suffer by the very guy who is supposed to do just the opposite.


    1. RE: “It would appear to me that the mere psychological effect of cutting off supply is enough drive hyperinflation on its own.”

      I agree that psychology plays a big role in market processes. For example, if an oil producer perceives that future income won’t cover the expense of repaying a loan used to boost current production, then the producer may not seek the loan.

      The U.S. is rich in oil and other fossil fuels. There is no reason other than regulatory policy for supply shortages to be causing price inflation at the gas pump.

      I’ll go further. I think Stumble Joe wants people to feel pain at the gas pump (and grocery store) because he stupidly believes in the green agenda.


      1. Your last point was exactly my point. That lunatic thinks American suffering is only a means to the ends so who cares. Makes me truly sick…

        Liked by 1 person

      2. “I think Stumble Joe wants people to feel pain at the gas pump (and grocery store)”

        I think that your “thought” is really, really dumb. Biden is a lifelong politician. He does NOT want higher gas prices because it hands the Republicans an easy issue even though Biden’s energy policies have NOTHING to do with the current price at the pump.

        Liked by 1 person

  2. “We should not mourn this. The petrodollar system was corrupt from its inception — built on other’s people’s resources, made for profit by our private banks, enforced by military might on the rest of the world. The petrodollar system created a new gilded age, made homes unaffordable to wage owners, and deindustrialized what was once the world’s most powerful manufacturing base. It left America running on empty. And now it will stop. The only question is whether that stop will be a slow brake or a crash, and how best we can get started again afterwards.”

    No lies detected.

    This is a very interesting post and I’m now eager to read the first few parts. I listen to a podcast (so I couldn’t share) by a guy who seems very credible on this sort of thing and his analysis of Russia’s motives were pretty similar–after the Cold War, the Yeltsin coup, and now how we’ve turned on Putin, Russia has decided they’ll never be fully integrated into the “west” and they feel they’ve negotiated a better deal with China. Ukraine is them ripping off the Band-Aid.

    We can already see evidence of an empire in decline domestically. I’m afraid what things will look like when a dying empire starts flailing.

    For what it’s worth, the subtext I always got from the Bernie Sanders campaigns was of a carefully managed, gradual withdrawal from global hegemon, e.g., de-financialization of the economy, actually producing the things we use, etc.


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