If the Strait of Hormuz doesn't open soon, as seems likely, there will be a massive economic crash
From "The Other 98%" on FB:
"If the Strait of Hormuz never reopens, the life you know starts coming apart by this fall. An actual apocalypse. Not as a metaphor. As a supply chain. And nobody in the media will walk you through what that actually looks like.
So let’s walk you through it.
For three months, a fifth of the world's oil has been cut off. You haven't felt the full weight of it yet, and there's a reason for that. The world had a cushion. Enormous reserves of oil sitting in storage, built up over years.
We've been burning through that cushion to keep the gas flowing and the prices from exploding. Quietly. Fast. At a pace never seen outside a global pandemic.
Here's the part the optimists keep skipping: a cushion is not a faucet. It runs out. And when you are near the bottom, you don't get a gentle warning. You lose the pressure that keeps fuel moving to every station, every truck, every farm, all at once.
The experts who war-game this for a living have a name for that moment. The operational floor. And the worst-case estimates put it around this fall.
Now picture it. The strait stays shut. The reserves hit empty. And the thing that's been hiding this crisis simply vanishes.
Diesel goes first, and diesel is what moves the world. The trucks that restock your grocery store. The trains. The cargo ships. The combines that bring in the harvest.
Translation, the supply chains we depend on to get our food and medicines disappear.
Food doesn't disappear because we stopped growing it. It disappears because nothing can afford to move it, and because fertilizer is made from natural gas, so the next harvest costs a fortune before it's even planted.
Translation. Grocery stores are closed. People will starve.
Factories across Europe and Asia go dark. Entire countries that import every drop they burn get crushed first. And oil itself blows past every record in human history, into numbers with no modern precedent, because the whole planet is fighting over a fraction of what it needs.
That is not a gas-price story. That is the machinery of modern civilization losing pressure everywhere, simultaneously.
And this isn't a fringe nightmare. The Atlantic Council says strategic reserves are "no match for massive, sustained production outages," and calls this disruption "without precedent."
And the oil shock is only the first domino. Modern economies run on cheap, predictable energy the way a body runs on oxygen, and when you choke it off everywhere at once, everything downstream seizes.
Translation. Worldwide economic collapse. The Great Depression on steroids (and we will beg for the days of the 2008 recession)
The scariest part isn't that this scenario exists. It's that the people who could stop it keep insisting everything is fine. The Treasury Secretary swears gas will be cheaper by the midterms. The reserves keep falling anyway.
This is the bill a war of choice put on the table. And the men who put it there are governing like it can't come due.
The cushion is almost gone, and the silence is the scariest part."
Even if this is exaggerated, there's little doubt we are in for very hard times soon.
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