What Will You Do When Gas Reaches $10 a Gallon?

Markets continued to slide this week as investors grapple with three growing concerns.

First, we’ve got rising gas and energy prices.

The national average is $4.59 a gallon, with California averaging $6.06.

Experts say the average will reach $6 across the U.S.

But many people fear it’ll go much higher than that.

What will you do when it reaches $10 a gallon?

Limit your travels and stay home more often?

Spend less on luxuries and more on essentials?

Yes to all of the above, unless, of course, you can no longer afford essentials.

Which leads to the second problem… inflation.

When the latest inflation number came out at 8.3% — just 0.2% lower than the previous number — pundits rejoiced, saying inflation had reached its peak.

But this number merely indicates inflation is still climbing, just at a slower rate.

Oof.

Finally, tying it all together is a complete distrust in our leadership at the helm because of government overspending.

In the latest example of this, the Biden administration just sent $40 billion to Ukraine.

It’s broken down as $20 billion for military support, $8 billion for economic support, $5 billion to offset food shortages, and $1 billion to help refugees.

The end game of this investment remains to be seen, especially if Ukraine loses the war.

And that money’s on top of the $13.6 billion we already sent the country.

Obviously, we don’t want a war and don’t want bloodshed.

But when do we say enough is enough?

Especially with our economy teetering on the brink of a recession…

There’s got to be a better way to support Ukraine while spending that money right here at home.

Stoking further distrust, Jerome Powell and his cronies have been flip-flopping on every statement about the economy.

After assuring us that inflation was “transitory” — something we’ve been crying foul about from the start — inflation is in fact here to stay.

And raising rates isn’t helping; its too little too late.

If the Fed is able to beat back inflation, according to CNN, it’s very unlikely to do so without sparking a recession.

At the beginning of the month, Powell assured us a recession wasn't likely.

According to Barron’s, Powell told reporters on May 5 that “It’s a strong economy. Nothing about it suggests that it’s close to or vulnerable to a recession.”

Just five days later, President Biden gave a speech and said, “When you look at the economy today, it’s clear that we’ve made enormous strides. And our plans and our policies have produced the strongest job-creation economy in modern times… Our economy has gone from being on the mend to on the move.”

But now experts say a recession is nearly unavoidable, and I’d argue we’ve been in a recession since November 2021.

If you’ve been following us at Wealth Daily, you know we’ve been pounding the table about how government overspending will lead to countless money troubles in the not-so-distant future.

But each administration kept kicking the can down the road…

And now we’re finally feeling the effects.

This year, some parts of the U.S. will be feeling it more than others.

That’s because the lack of energy storage is becoming a crisis.

But where there’s crisis, there’s opportunity…

The Coming Blackouts

On top of all the problems mentioned above, a majority of U.S. states are at severe risk of blackouts this summer.

An excerpt from a National Review article sums it up well:

A few days ago, the North American Electric Reliability Corporation issued its assessment of the power grid for the coming summer and warned that the Midwest Independent System Operator region — basically from the east side of the North Dakota over to the state of Michigan, down to the southern tip of Illinois, and including chunks of east Texas, southern Arkansas, Louisiana, and western Mississippi — faces a capacity shortfall that poses high risk of emergencies during peak summer conditions. Then, everything west of that region — basically the entire country west of the Mississippi River — is at elevated risk of blackouts, owing to drought conditions impacting hydroelectric plants and greatly increasing the likelihood of wildfires.

This underscores the fact that despite the gargantuan push for renewable and sustainable energy, the U.S. is woefully behind when it comes to energy storage, as we've been conditioned to utilize mainly lithium-ion batteries.

And now that the U.S. is scrambling to find better ways of storing energy, there’s one little-known solution quietly gaining momentum.

The problem facing the U.S. right now is a lack of storage capacity in our grid.

It’s clear lithium-ion batteries can’t store enough energy and are too unstable for continued use.

We all know from our cellphones that lithium-ion batteries don't last very long.

That's because lithium batteries gradually lose their ability to retain a charge and stop working altogether after only 2,000 charging cycles (about five years).

These batteries also pose a fire risk, as electric vehicles and gigafactories have caught fire countless times over the years.

Lithium batteries also decay when not in use. The journal Progress in Natural Science: Materials International found that varying temperature conditions produce adverse effects on the stability of lithium-based batteries.

So as the U.S. transitions away from lithium, the companies working toward an alternative battery tech will create windfalls for investors in the coming years.

In fact, the industry's projected to reach $14 trillion within the decade.

And there's really only one company on the front lines with a viable solution to this mess.

It's produced the most promising new battery tech so the U.S. can store more energy and finally break its dependence on lithium once and for all.

To find out more, just watch this presentation for all the details about the sub-$1 company behind it all.

Stay frosty,

Alexander Boulden
Editor, Wealth Daily

Check us out on YouTube!

After Alexander’s passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing.

Alexander is the investment director of Insider Stakeout — a weekly investment advisory service dedicated to tracking the smartest money on the planet so that his readers can achieve life-altering, market-beating returns. He also serves at the managing editor for R.I.C.H. Report, a comprehensive service that uses the highest-quality investment research and strategies that guides its members in growing their wealth on top of preserving it.

Check out his editor’s page here.

Want to hear more from Alexander? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on.