Author Topic: From $1.89 to $4.31: What Really Happened at That Miami Gas Station  (Read 222 times)

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Offline Luis Gonzalez

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I took this photo of a Miami gas station on November 5, 2020. It was the morning after the stolen 2020 election.

Today's price, in the same area (the gas station is gone now) is $4.31/gl.

Over the years, I've reposted the image whenever fuel prices spike. Others have borrowed it to make a political point.

But I wanted to know something simpler: what actually happened between $1.89 and $4.31?

The answer is bigger than any politician. Inflation explains why gas isn't $1.89 anymore.

Wars, refinery closures, OPEC production discipline, and global shipping risks explain why it isn't merely $2.45.

I followed the numbers from that single gas station sign all the way through the global energy system.

Read the full analysis at The Last Wire


#Energy #Economics #Inflation #OilMarkets #GasPrices #Geopolitics #TheLastWire
« Last Edit: Today at 08:21 am by Luis Gonzalez »
"The growth of knowledge depends entirely upon disagreement." — Karl Popper

“Life, liberty, and property do not exist because men have made laws. On the contrary, it was the fact that life, liberty, and property existed beforehand that caused men to make laws in the first place." — Frederic Bastiat

“You can vote Socialism in, but you’re gonna have to shoot your way out of it.” — Me

“Better a grave full of memories than one full of dreams.” — Me.

Offline Bigun

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Yet more thoughtful analysis from @Luis Gonzalez I hope it is widely read!
Scientists, like all discoverers of truth, have always asked, "What?” “How?” “Why?” “What if?” and “Why not?” Questioning science is science.

Jaeger, John . Brilliant Creations : The Wonder of Nature and Life (p. 5). Kindle Edition.

Offline Luis Gonzalez

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Yet more thoughtful analysis from @Luis Gonzalez I hope it is widely read!

From your keyboard to God's monitor!

I need traction!
"The growth of knowledge depends entirely upon disagreement." — Karl Popper

“Life, liberty, and property do not exist because men have made laws. On the contrary, it was the fact that life, liberty, and property existed beforehand that caused men to make laws in the first place." — Frederic Bastiat

“You can vote Socialism in, but you’re gonna have to shoot your way out of it.” — Me

“Better a grave full of memories than one full of dreams.” — Me.

Offline Smokin Joe

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Excellent analysis!
How God must weep at humans' folly! Stand fast! God knows what he is doing!
Seventeen Techniques for Truth Suppression

Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.

C S Lewis

Offline Luis Gonzalez

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Excellent analysis!

Here is the money line in the entire piece... Imma gonna give it away:

Roughly 75–80% of the total increase in prices from 2020 through 2025 had already happened before the second Trump term began, based on CPI levels over that period.
"The growth of knowledge depends entirely upon disagreement." — Karl Popper

“Life, liberty, and property do not exist because men have made laws. On the contrary, it was the fact that life, liberty, and property existed beforehand that caused men to make laws in the first place." — Frederic Bastiat

“You can vote Socialism in, but you’re gonna have to shoot your way out of it.” — Me

“Better a grave full of memories than one full of dreams.” — Me.

Offline Bigun

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Here is the money line in the entire piece... Imma gonna give it away:

Roughly 75–80% of the total increase in prices from 2020 through 2025 had already happened before the second Trump term began, based on CPI levels over that period.

 :yowsa:
Scientists, like all discoverers of truth, have always asked, "What?” “How?” “Why?” “What if?” and “Why not?” Questioning science is science.

Jaeger, John . Brilliant Creations : The Wonder of Nature and Life (p. 5). Kindle Edition.

Offline WhatWouldReaganDo

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And why had the price of gas dropped to $1.89?

Lack of demand due to the COVID shutdowns.
So this is how liberty dies...with thunderous applause.

Offline Smokin Joe

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Here is the money line in the entire piece... Imma gonna give it away:

Roughly 75–80% of the total increase in prices from 2020 through 2025 had already happened before the second Trump term began, based on CPI levels over that period.
Yep. Unfortunately, some people don't understand the difference between prices and inflation. Most of the inflation (the very worst part) was over by 2025. The elevated prices came down when they were a more purely supply and demand problem, but the base increases were there to stay.
That 2020 dollar stuffed in the mattress now needed another quarter to buy what it did just four years before. It was worth that much less.
Still is, that hasn't changed.

What did change was the rate at which those prices were going up (at which the money was being devalued), back to more normal rates of 2-3% instead of 6-8%.

Any reductions in prices will come from either changes in geopolitics and supply chains, or increased efficiency allowing prices to fall, especially in the case of globally traded commodities, where the purchasers set the prices.
How God must weep at humans' folly! Stand fast! God knows what he is doing!
Seventeen Techniques for Truth Suppression

Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.

C S Lewis

Offline Luis Gonzalez

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And why had the price of gas dropped to $1.89?

Lack of demand due to the COVID shutdowns.

IOW a glut in the world market.

Just like the one about to happen when the Iran thing is over with.
"The growth of knowledge depends entirely upon disagreement." — Karl Popper

“Life, liberty, and property do not exist because men have made laws. On the contrary, it was the fact that life, liberty, and property existed beforehand that caused men to make laws in the first place." — Frederic Bastiat

“You can vote Socialism in, but you’re gonna have to shoot your way out of it.” — Me

“Better a grave full of memories than one full of dreams.” — Me.

Offline Smokin Joe

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  • I was a "conspiracy theorist". Now I'm just right.
IOW a glut in the world market.

Just like the one about to happen when the Iran thing is over with.
Entirely possible. Good time to move out of the drilling end of things.
How God must weep at humans' folly! Stand fast! God knows what he is doing!
Seventeen Techniques for Truth Suppression

Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.

C S Lewis