“I was optimistic we’d have a better month, but it looks now like the recovery ended last summer, which means we’re just idling.”-Ed Leamer, University California Los Angeles economist

If you use diesel fuel you might have noticed that the price has been slowly going down.  That’s good for those of use who pay at the pump, but for the economy as a whole it’s a Canary in the Coal Mine of worse to come for our economy.

Diesel fuel prices are dropping because of a huge drop in demand.  That drop has been ongoing since last year, and in the past four months has been picking up speed.

Most users of diesel are transportation industries.  They ship products all over the country, but shipments of new products have dropped so much in eight of the past 12 months, that trucks, ships and aircraft are sitting idle.

According to the Ceridian-UCLA Pulse of Commerce Index, the drop in diesel fuel demand is proof any economic recovery that might have been, is over.

Ed Leamer says the two main reasons demand is down: Low wages/lack of jobs and high debt.  Notice they’re the two things our elected officials, across the board from local leaders to the White House, can’t seem to deal with.

Leamer also says such a drop in demand, in the U.S., is a first in world history: “U.S. demand has been such a key for the rest of the world for so long. This is sort of uncharted territory.”