A fuel distributor named KRSM allegedly racked up $4 million in unpaid bills for gasoline. Some of that gas went to Freedom Fuel stations. Freedom Fuel is the Trump-promoted network that exists because apparently regular gas stations weren't sufficiently patriotic.
The federal lawsuit does not explain how you sell millions of dollars worth of fuel you never paid for. That's just called theft with extra steps and a corporate logo. KRSM managed to turn gas distribution into a Ponzi scheme, which takes genuine creativity in a business where the product literally evaporates if you wait too long.
Freedom Fuel customers were buying gas that nobody paid for. They were driving around on debt. Their tanks were full of accounts receivable. The American dream rendered in 87 octane.
Somewhere a retail trader is reading this headline and thinking it's a buying opportunity. He's convinced himself that unpaid invoices are actually a bullish signal because it means demand is strong. He's already typing "KRSM stock ticker" into Google. He will be devastated to learn that KRSM is not publicly traded and that his freedom to lose money has been temporarily restricted by the fact that this is a private company being sued into oblivion.
The distributors who actually paid for the fuel they sold must feel like absolute idiots right now. They followed the rules like suckers while KRSM was out here running a tab at the petroleum wholesale market. Turns out the real freedom was freedom from paying your f*cking bills.
Trump promoted gas stations that sold stolen gas, which is the most on-brand thing I've heard all week.
Photo by Nguyen Minh on Unsplash
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