Is The Economy Just Now Falling Apart

[Declan]

Its going up by the hour in Ireland, each delivery at least. It is 1.89 in places.

What is the breaking point price Val??
The nice round 2 euro?
Because that 11c and a bit more is needed to catch up with the crude price which likely equates to #2.25.
Ireland has a far far higher % of diesel drivers and I imagine the temptation to use red diesel bought months ago, is over-whelming.

 

[Declan]

Oh, it's illegal here as well. However, the likelihood of getting caught is slim to none, since passenger vehicles don't have to pass through lorry scales (where there are frequent checks).

Do you happen to know the cost of ag diesel, relative to the passenger diesel.
I might get a sprinter.

 

[Declan]

For you it would be about $.50 cents cheaper. MA and fed taxes are $.24 a pop. In CA, it would be $.92 less.

Interesting. But in Ireland I believe the difference is far greater. 50c is not much for here.

 

[Declan]

Well oil has opened for trade in Asia and it isup another 10 dollars so add another 25c a litre.
Tally ho.

 

[Declan]

Not much ag in MA though, eh? Do they even have Grange halls there?

Never heard of them. You have to travel out a bit to see any cattle here

 

[Declan]

Sounds like a good watering hole.

 

[Declan]

In America, what does the figure at the end of the advertised price mean? Say 5.43 (9/10)

In Ireland they use the .99 to keep it under the full figure.

It is the same, just the decimal point, so it is a penny higher than the figure.

I assume this goes back to the days when gas was say 23c a gallon and then the percentages meant something.

 

[Declan]

Listening to Joe on RTE,
A fishing boat captain said they did not go out for the 10 days to catch the rest of their monthly quota because the fish were valued at 27000 and the diesel cost 30000 euro.

no fish

 

[Myles O'Reilly]

If things keep going as they are Dan Jnr will have to offload the Stang asap.

I'm running a diesel Corolla to keep costs down. Americans might have to consider going compact also if this oil crises deepens.

 

[Declan]

If things keep going as they are Dan Jnr will have to offload the Stang asap.

I'm running a diesel Corolla to keep costs down. Americans might have to consider going compact also if this oil crises deepens.

It is garaged for the winter and needs the rear end rebuilt as well, coming out in a couple of weeks.

There is no real economy cars here, 25 might is considered decent.

About 30 years ago we had the VW jetty diesel that got very close to 50mpg but long gone. Too many emission regulations.

Also, people do not like diesels here.

And the us brands made horrific diesels in the 80s. I had one myself, a Chevy caprice wagon diesel. The head gasket went.

 

[Declan]

The engine blocks (small-block Chevrolet/Oldsmobile 350 or 5.7L) were practically the same as those for the gasoline engines and they couldn't handle all the additional compression. If you drove them like an old granny though, they actually lasted. Another problem was that diesel fuel at that time in the States was water-logged but General Motors in their infinite wisdom, neglected to install a water separator for the fuel system.

Interesting point on the VW Jetta. My nephew bought a VW Caddy (mini-truck) with a diesel a few years back and because of its age (early 80's model), it's exempt from emissions testing.

The caprice I had was the 5.7 litre engine. It was a beauty and rode like a boat.

I wish I had bought a jetta diesel

 

[Myles O'Reilly]

There is no real economy cars here, 25 might is considered decent.

Ach yis must have small cars that are easy on gas?

Subcompact would be too small for the US (Fiesta, Yaris etc) but there's gotta be Compacts (Focus, Golf etc) that do good mileage?

 

[Myles O'Reilly]

I have a Jeep diesel. Thank God for small favors.

What do you get outta her in US gallons Sir?

 

[Myles O'Reilly]

I heard two oil ships were turned back from the UK ports yesterday.

They turned one back from Dublin port too.

 

[Myles O'Reilly]

I paid $6.19 yesterday.

Val that's é1.50 per Litre.

T100, the average price in Ireland is around é2.00 per L. So its around a third dearer here. It used to be twice as expensive here but you guys are catching up.

 

[Declan]

Val that's é1.50 per Litre.

T100, the average price in Ireland is around é2.00 per L. So its around a third dearer here. It used to be twice as expensive here buy you guys are catching up.

that is because the non tax portion, the small part is increasing in both places. I am amazed the irish moan about the garage making maybe 4% and tax being recently 70% or more

 

[Myles O'Reilly]

I don't mind the garage making some. What I do mind is when there's an increase in the price of crude they shoot their prices up instantly.

But when there's a reduction they say "It takes time to trickle down to the forecourt".

 

[Declan]

I don't begrudge them. Plus people buy more when prices are rising and less when it looks like falling a bit more and they wait

 

[Myles O'Reilly]

I don't understand that statement.

They buy their stock at a certain price but instead of selling it at that price plus their percentage, they immediately increase the price if crude goes up.

However, when crude goes down they say 'ah we'll have to wait a few days before we can reduce prices..

That, Sir, is what's called bullsh1t.

 

[Declan]

From your viewpoint maybe. But how is it different from cattle for example. I buy 5 cattle and they go up and I sell them for a profit. Fair enough.

But if I buy and the price goes down I am supposed to pass good fortune onto my customer.

No. I must sell my cattle for as much as I can regardless.

I am not Mother Theresa or Santa.

 

[Myles O'Reilly]

From your viewpoint maybe. But how is it different from cattle for example. I buy 5 cattle and they go up and I sell them for a profit. Fair enough.
But if I buy and the price goes down I am supposed to pass good fortune onto my customer. No. I must sell my cattle for as much as I can regardless.
I am not Mother Theresa or Santa.

Cattle are a different commodity. According to that logic everything should be sold to make maximum profit and there should be no laws against it eg Cartel behaviour etc.

People have to buy fuel regardless of price. So folk aren't going to buy more petrol in say January because it was $1.50 compared to March when its $2.00. The Govt here are investigating petrol station's price gouging especially when they took 15/20 cent off in tax but many stations didn't pass that onto the customer.

 

[Declan]

. The Govt here are investigating petrol station's price gouging especially when they took 15/20 cent off in tax but many stations didn't pass that onto the customer.

The government are the gougers, taking about a euro for themselves for no effort. The lad in the garage has to build it and pay his ongoing costs etc etc

 

[Declan]

My local filling station has no agricultural diesel to day.

I suspect there will be no road diesel in many garages soon. Each new load is higher priced than the last.

Meanwhile Finland is opening a nuclear power plant. https://www.theguardian.com/environ...dFVgTCFcjGeKj6pn9AcvYWHmjkoQ3KZX2Ri0CNndGYQnQ

Do farmers buy at stations. I thought all farmers would have their own tank and have it delivered

 

[Declan]

I say diesel here at $5.60, a full dollar more than gas/petrol. Much bigger spread than normal

 

[Declan]

Most have a tank and buy a load, there is a problem with short deliveries if the farmer is not home. Then there is theft.

I find 1,000 does not last long.

1000 liters??

Is the 300 gallon tank the usual or are they bigger.

How many hours to a gallon.
For a 35 and for the modern super tractors.

Will regular farmer revert to the 35 and 165.

 

[Declan]

There are plastic fuel tanks down at the Co-op. I looked at them and they vary from 920 litres to 1,100 litres. That is
200 Irish gallons or 240 US. I would say a US gallon would do a 35 for 2 hours working. I hear the modern big ones would
gulp it. I have a Ford 4,000. it would do 2 hours. a Fiat 90/90 it would 1.7 which I mostly use about the yard and mowing and Big tractor
which I would think would only go 50 minutes.

I never check it exactly.

One of my contractors has a huge steel tank, There are three brothers and they must have 6 large tractors all Case.

That is not too bad. I imagine the 4000 is good enough for most jobs and even a rare 10 hour day is only 5 gallon or 20 euro.

 

[Declan]

From 11.40 to 28 euros. The whole thing is going down. In a week we could be screwed

 

[Declan]

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It is all about interest rates here. The 10 year is what mortages and loans are tied to. 2% on the 10 year bond is the breaking point(according to some). Today the price is down which means the interest rate is up. At 2.13% , this has swung the Dow about 500 points with about 90 minutes to go.

 

[Myles O'Reilly]

Road diesel is dearer than petrol in Ireland, about 3 cent

I can't remember the last time that was. Was it when the Greens hiked the price of petrol around 2008 or before that?

 

[Myles O'Reilly]

I have a Ford 4,000. it would do 2 hours. a Fiat 90/90 it would 1.7 which I mostly use about the yard and mowing and Big tractor

What's your road Bus Sir? I know a couple of local farmers and they drive either pickups or Landys.

Years ago you'd see farmers pulling horseboxes and trailer loads of turf etc in ordinary Saloons (eg Cortina) but most seem to have 4x4's these days.

 

[Myles O'Reilly]

My mower conditioner.

Is that essentially a big mulcher?

 

[Declan]

Today the Fed raises the rate. Maybe they surprise and go for 0.5%

 

[Myles O'Reilly]

The TDI's are a great engine. As long as the oil and filters are looked after. Mate let his oil go low and ended up with a 4k rebuild.

 

[Declan]

The mot important issue today is the sell off in bonds that is thereby raising the interest rates. The 10years now is touching 2.3%.

Mortgage rates rise of course in tandem. The real estate crash could be epic.

One of these days we are likely to see a failing US Treasury Bond auction. Where they can not sell the entire issue without the rates jumping. This will be something to see.

 

[Declan]

I do not follow Japan but an interest development has happened. In a time where central banks are supposedly stopping buying bonds, the japanese central bank says that it will not let the interest rate on the japanese 10 year bond go above 0.25%. To insure this does not happen, it is committing to buy unlimited amounts of these bonds with of course printed yen. And with that, the yen fell like a stone and still the rate went to 0.256%. So they tonight and onwards, are facing what the US might have to face soon.
The government debt in Japan is about 3 times larger relatively speaking than the US debt.
I look forward to ther Asian markets opening in a short while for Tuesday trade

 

[Declan]

Is it true that America promised Saudi Arabia military protection inn return for it pricing its oil in dollars?

Yes. That was the quid quo pro.

I would point out now that Saudi are backing the new stronger horse
. Russia.

 

[Declan]

In the other thread. I linked to an article that putthe proposal forward, that Putins real objective was to grab the oil, gas, iron and other minerals and resources in the East. A good article.

 

[Declan]

Interest rates rising yesterday and again today is going to result in a lot of money lost in bonds and stocks. Hold on tight.

 

[Myles O'Reilly]

If things keep going as they are Dan Jnr will have to offload the Stang asap.

I'm running a diesel Corolla to keep costs down. Americans might have to consider going compact also if this oil crises deepens.

Well I used the brim method (fill tank to brim, set trip clock to zero, drive til empty light comes on, brim again and divide amount of litres/gallons by miles driven to get exact mpg) on this Corolla I got and I've recorded 52mpg (43mpg US) from almost exclusively short trips in an urban area.

This is incredibly good. If I was mainly driving on B roads and Motorways it'd be up to 70!

The car is very good on fuel but a lot of this is down to driving economically also.

 

[Declan]

Well I used the brim method (fill tank to brim, set trip clock to zero, drive til empty light comes on, brim again and divide amount of litres/gallons by miles driven to get exact mpg) on this Corolla I got and I've recorded 52mpg (43mpg US) from almost exclusively short trips in an urban area.

This is incredibly good. If I was mainly driving on B roads and Motorways it'd be up to 70!

The car is very good on fuel but a lot of this is down to driving economically also.

I must buy a car over there but I am not sure about insurance. Here you insurw the care and everyone can drive it basically.

But I guess I could not for example get the loan of yours for a quick run down to Athy.