I’ve excerpted an article below, showing that, while the US Economy nominally grew from a GDP of $13.8 Trillion to $17.4 Trillion, the US Trucking Industry diesel consumption fell from 4.3 million barrels per day to 3.8 million barrels from 2007 to 2014, and it had nothing to do with gas mileage.
For GDP to have grown 26%, while trucking fell over 10%, seems to be a big disconnect to me. All else being equal (never) it would appear that GDP growth was all due to 4.5% inflation above what the government number crunchers are telling us.
As a secondary note, I see in the chart below that Trucking Fuel Efficiency fell off a cliff between 1965 and 1970 – from 7.8 to 5.5 miles per gallon. Does anybody out there know why?
What Silver Chart Has The Bankers Worried??
By SRSrocco – Re-Blogged From http://www.Silver-Phoenix500.com
According to the EIA – U.S. Energy Information Agency, supplies of diesel product to the U.S. market peaked in 2007 at 4.27 million barrels per day (mbd) and declined 11% to 3.82 mbd in 2014. These figures represent the average annual amount of diesel supplied to the U.S. Market:
We must remember, the majority of diesel used in the U.S. is consumed by our huge trucking-transportation system. So, how did the U.S. GDP grow from $13.8 trillion in 2007 to $17.4 trillion in 2014, while the country’s commercial trucking fuel consumption fell 11%?? It didn’t…. the U.S. GDP figures are all smoke and mirrors.
As I have stated many times, the Fed and U.S. Govt. manufactured financial and economic growth by propping up the market with trillions of Dollars of monetary liquidity. If total U.S. diesel and gasoline consumption declined since 2007, how is it possible to show a 26% increase in U.S. GDP ($13.8 trillion to $17.4 trillion)?
Of course, some would have a knee-jerk reaction and say that “fuel efficiency” has increased in the United States, so that would account for the decline. Hardly. If we look at the table below, you will see that heavy-duty truck fuel consumption is the same at 6.4 mpg in 2012 as it was in 2007:
You see, the Fed and U.S. Government can manufacture all the financial and economic data to their heart’s desire. However, the facts show that the United States commercial transportation industry consumed 11% less diesel in 2014 than it did in 2007. Thus, the country’s GDP should be lower, not higher.