In California, gas stations are facing a unique challenge. The station signs are only configured to go up to $9.99 per gallon and at several stations the price of diesel has reached that maximum. Diesel prices are higher than they have ever been in history.
Worse, according to some news reports the advertising of the maximum price of $9.99 per gallon is meant to signal to truck drivers that they have run out of diesel altogether. Expensive diesel is a hit to the economy, but running out of the fuel at any price is a whole different kind of crisis.
Our highways are filled with semi-trucks burning diesel to bring the products we depend on to the markets. Our freight trains use diesel to transport what is not transported by truck. When the price of diesel increases, the cost of everything moved by that diesel also increases. This is one reason we are seeing much more inflation than the government wants to admit.
The diesel crisis is getting so serious that even President Trump has been forced to admit it. Of course, instead of taking at least part of the blame over his war of choice against Iran and his continuation of the proxy war against Russia through Ukraine, he is blaming Ukraine’s military strikes on Russian energy infrastructure.
President Trump is now asking Ukraine to stop attacking Russian energy resources because diesel is a global commodity and the scarcity produced by the attacks is hitting us here at home. But the strikes deep inside Russia are guided by US intelligence, which provides the targeting data for Ukraine.
The Russia/Ukraine war is only part of the problem. Despite President Trump’s bluster about controlling the Strait of Hormuz, the fact is Iran is in control and very little oil – or anything else – makes it out without Iranian approval.
Yemen’s Iran-allied Houthis joining the fight only makes matters worse. Over the weekend they attacked Saudi Arabia’s bypass pipeline, taking much more oil off the market.
The real problem here is not oil or diesel. The real problem is that wars of choice spin out of control and destroy the economies of those who launch them. Empires throughout history have been undone by endless overseas wars. No amount of bragging about the size and strength of our military can change this reality.
Now we are seeing the chickens coming home to roost.
President Trump has justified tanking the US economy by claiming the attack on Iran was essential because they were about to get a nuclear weapon. Our intelligence community disagreed, but he refused to listen and took his cue from Netanyahu instead.
It turns out Iran actually does have a “nuclear weapon.” That weapon is the ability to control the world’s oil flows at a margin high enough to cripple the economies of any country seeking to conquer it. According to press reports, former Director of National Intelligence Tulsi Gabbard tried to warn President Trump that Iran would close the Strait of Hormuz if attacked but he didn’t want to hear it.
The Founders were determined to prevent the executive branch from being able to start wars for this very reason. The “people’s branch” of government – Congress – is where they placed the power to launch wars. We are now seeing the consequences of ignoring their very wise advice.
from Ron Paul Institute Featured Articles
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