How could an economy that is 70% dependent upon Americans to drive their cars to malls and buy shit be in a recovery if gasoline usage has been plunging for the last four years? Petroleum usage is at the same level as 1996. All the Chinese shit has to be shipped by truck to all the dying big box retailers. The MSM pundits always have a storyline to sell. They try to convince the ignorant masses that the decline in the labor force is due to Boomers retiring early. Of course the data shows the over 55 workers soaring to record highs, obliterating that false storyline. Now they peddle the storyline that plunging fuel usage is due to vehicles getting better gas mileage as mandated by the Obamanistas. That sounds awesome and very green. It must be the millions of Volts being sold.
The storyline is obliterated by the facts reported below. The MSM was touting the fantastic auto recovery, with 14.5 million vehicles peddled to the masses with 7 year 0% loans to subprime level borrowers. I guess everyone is buying small fuel efficient cars getting 35 mpg and resulting in the plunge in gasoline usage. One little problem with this storyline. It is complete and utter bullshit. It seems 49% of the vehicles sold were pickup trucks, SUVs, minivans and crossovers. Small energy efficient cars accounted for only 19% of all the vehicles sold in the U.S. The storyline about fuel efficiency sounds great, but the average MPG of all the vehicles in the U.S. is 18 mpg. Three of the top five selling vehicles in the U.S. in December were the Ford F Pickup (19 MPG), Chevrolet Silverado (15 MPG), and Dodge Ram Pickup (16 MPG).
|Dec 2012||% Chg from Dec’11||YTD 2012||% Chg from YTD 2011|
The storyline from the Obamanistas is that his fuel economy policies and green initiatives have resulted in the reduced consumption. He wouldn’t want to tout the Obama Depression as the real reason. The Obama Volt had sales of 23,000 even though GM offered leases at $289 per month, generating a huge loss per lease. Plus you the taxpayer provided $7,500 per Volt given away. Half the sales were in California, land of the delusional. The storyline about GM being saved by Obama and doing well is also false. Their market share has plunged from 19.6% in 2011 to 17.9% in 2012, even as they utilize Ally Financial to dole out subprime loans to deadbeats and channel stuff inventory. Ford’s market share also fell from 16.8% to 15.5%. Does this jive with a storyline of success?
With this huge drop in consumption and the Obama touted Bakken Oil Boom, we most certainly paid the lowest price for gas in years. Not quite. We paid the highest average price for a gallon of gas in the history of the country. We beat the previous record set in 2011. Who says Obama hasn’t set any records? You may have noticed the 10 cent rise in the last few weeks as we get set for a new record in 2013. The energy independence storyline is already getting a little long in the tooth as the myopic MSM pundits seem to have foregotten the rest of the world uses oil and it is a fungible commodity whose price will be set at the margin. And that margin will go relentlessly higher even as our progressing depression deepens.
The recovery storyline will continue to be peddled to the masses by the MSM and the Obamanistas. As the payroll tax increase further impoverishes the middle and lower class workers and the full negative impact of Obamacare crushes small businesses, even the bubble headed blondes on CNBC and Fox will get it. Maybe not.