r/collapse • u/Aiwillstealourjobs • 28d ago

Economic We will have a 1973/1981 recession very soon because of gas prices

Hormuz closed. Saudi East-West pipeline out of comission for 1 month minimum. Russia is producing 60% of their normal production due to Ukraine attacks. China not buying oil for now, but when it starts it will increase the price even further. Saudis told Europe that they are not getting any oil in September/October.

Gas prices in Europe are approaching 2.5 Euros/Liter.

In the US they are around 5 Dollars/Gallon.

Renting a tanker costs 1 Million Dollar/day. Just one year ago it was 200k.

Transportation, industry and consumers cannot take this for long.

US household savings rate is down to just 3%. Credit cards maxed out. Auto/student loans at an all time high.

EU gas reserves are just 2/3 of their maximum. By this time last year they were at 80% capacity.

And winter is coming. This means more gas for heating. This means more gas for vehicles.

If gas prices dont normalize and the flow resumes within a month or so, then a recession by the end of this year or the beginning of next year is almost certain.

Then we also have the AI bubble where AI is burning through money and investment is drying up.

Food yields will be lower due to farmers not being able to afford gas and El Nino wrecking agricultural production.

Considered that the US is 40 Trillion in debt and most people are living hand to mouth, a recession could mean a depression very soon.

The Great Depression went from 1929-1933/39

The Greatest Depression from 2026-2039?

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u/Effective-Bandicoot8 28d ago

https://www.publicnotice.co/p/mitch-mcconnell-legacy

"The first key moment came when Barack Obama was elected in 2008. Though Obama had won a sweeping victory and the country was in the midst of a catastrophic economic crisis, McConnell told his caucus they had a path back to power: Obstruct everything Obama tried to do, regardless of whether Republicans had any substantive objections to it. Only if they forced Obama to fail could they retake power."

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u/Livid-Rutabaga 28d ago

I remember this.

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u/DougDougDougDoug 28d ago

Yeah, cool take. No one has heard this. Literally HOW POLITICS WORKS

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u/smackson 27d ago

It's always been a factor but quantity is important, and I put it to you that the level of brazen-ness and sabotage to benefit party over country, from that particular period, is worth remarking on.

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u/DougDougDougDoug 27d ago

Yea, the party with complete control of Congress and the WH could not get anything done. One of the main reasons we are here is Democrats complete and total learned helplessness. It’s genuinely embarrassing to live in this country and watch anyone but the right make excuses for their pathetic representatives 

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u/smackson 26d ago

We are in a tet-a-tet thread but I cannot deny your take.

Let's hope the shit improves