Way, way, way, back in the old days when this author made some sort of insane prediction on December 28, 2021, this clown show author made a prediction which apparently struck some nerves.
Okay, so that was just 3 weeks ago. But to the attention deficit disorder infected world we live in now, the article linked below appears to be prescient (and terrifying):
In that article, yours truly stated the following:
These shortages and generally depressing news will get another body blow when gasoline prices for regular unleaded breach the $5.00 per gallon level on the national average and in many places well north of $7.00 per gallon. This will be the Californication of large swaths of the nation and suppress consumer spending as energy and food prices will cause at least a 10-15 point drop in consumer confidence from current levels.
So what did Goldman Sachs say tonight, with a very conservative commentary/estimate tonight?
How bad would that be if that’s the average price for the remainder of this year from Q2 onward?
Gas lines would be a good thing because it means rationing and price controls are being enforced by the Federal Government.
The truth is that if Goldman Sachs is correct about this, the GDP, as forecast by moi in the link above, will go negative into the election and result in an even larger political dislocation than anyone has forecast.
Jimmy Carter will become a national hero by comparison to Biden as the national average for regular unleaded will scream past $5.00 per gallon and worse, all petroleum products will fall into even shorter supply. If anyone doesn’t think this will have a dramatic impact on GDP, they are clueless. As an intermediary to manufacturers and logistics manager I can tell you now that before this forecast, prices were going up 15-20% at the wholesale level on finished goods.
All bets are off. It is up to the highest bidder.
Thank you Brandon.