It's the Economy STUPID!

A reader asked me how long a bounce Mr. Obama would get from the killing of OBL...I predict 2 weeks.  That's about how long the MSM will be able to wind this out.  The love fest was evident on ABC tonight with their "news breaks" on "late breaking news."  What'shername, the ABC evening news anchor, just gushed about "our brave seals."...

After 2 weeks, reality will return, and people will see the cost of gasoline rise above $4.50...and begin it's inexorable climb to the $5 dollar rung.  Of course, pretty much our entire economy is tied to the price of fuel.  Very soon, we'll see real inflation rates approach 10%.  The current system for measuring inflation doesn't count the cost of energy or food...both of which require intensive use of petroleum products to reach market, not just to grow.  Thus, the GAO continues to insist that there is no inflation...but then, they don't do any grocery shopping.
Mr. Obama claims he can't do anything about the cost of gasoline in the immediate future (the next few months).  While technically, that's correct, we as a nation, have some of the largest reserves of oil in the world.  We are continually finding new oil fields.  What this government has refused to do is permit new drilling.  The reason that the deep water BP spill happened at all is that environmentalists have successfully blocked the exploitation of newly discovered (over the past 20 years) of  oil fields located on the continental shelf (The CS lies in waters from 0 feet to approximately 500 feet deep).   This has forced us to exploit very deep water fields.  But now, even that's off limits.

But not for Brazil.  We gave Brazil's Petrobaz (spelling?) $2,000,000,000.00 to exploit  a new field discovered in deep water off the south east coast of Brazil.  Now, just who holds the largest block of privately held stock in that partially publically (Brazillian government) owned company?  Why George Soros, one of the huge contributors to Obama's 2008 presidential campaign.

Then throw in Mr. Obama's faux "deficit reduction plan" (which budget is still 25% larger than the largest signed by Mr. G. W. Bush)...that has markets in flux, and has caused Stardard & Poors, among other bond rating agencies to down-grade US Treasury bonds...plus the Chinese have started to sell off  US T-Bills (one common indicator that an attack on the dollar is imminent)...and IT'S THE ECONOMY STUPID!

Now, the real question is...will Washington listen?

Obama On Gas Prices...Clueless

Here is what Mr. Obama really thinks...



Unfortunately, I can't afford to replace my 1994 Nissan P/U truck...though it does get better gas  milage than a new one gets.  Nor can my wife replace her 2006 Toyota Echo.  The price of gas has doubled in the past 2 years, yet this administration just doesn't get it.  Most American's can't afford to buy a new car.  Many of us are either underemployed (17% work only part-time) or unemployed (9%). 

Yet, this administration has refused to allow either new exploration or new drilling, while giving $2 billion dollars to a Brazilian company that George Soros owns a large chunk of stock in.  When oil and gas prices rose in 2004, George Bush granted new exploratory permits and allowed new drilling, that immediately brought down the cost of gasoline.  Yet, this administration is happy for you to have to pay above $6 per gallon gasoline.  The Sec of Energy and Sec of the Interior  are both on record as saying they would like to see a minimum of $8 per gallon. 

With a heavy dose of inflation on the way, the era of Jimmy Carter is beginning to be a "best case senario." That's according to his supporters!  Those of us who have just crawled out of the deep financial hole that the most recent recession has left us in, are terrified of what will happen next.  With a steep rise in costs, the middle and working class will be devastated...and it's all driven by rising gasoline prices because if it costs more to put food into the grocery store...that cost will be passed onto consumers.

Mr. Obama, it's past time to get your head out of your ass and take a harsh look at what your policies are doing to this  country.  We cannot afford your agenda, nor can we afford the amount of government you desire. 

Quantitative Easing Explained

Here's as good and explanation of what Quantitative Easing is:



Unfortunately, it hasn't worked in much the say way that Keynesian Economic model hasn't worked.  From the comments of as blog post by Don Surber:

Krugman isn’t stupid, he’s blinded by his own preconceptions…and therein is the problem. When you refuse to see just what is facing the country objectively, and become a political hack, and lose whatever credibility you may have once had. Mr. Krugman, has become just another mouthpiece for the political left, Keynesian economic model.


That model failed to end the Great Depression of the late 1920’s and most of 1930’s. In fact, it’s been proven by a couple of UC economists (who most certainly didn’t intend to do so) that FDR’s policies of 1934-5 killed off the nacent recovery and led tto another 7 years of depression. WW2 ended the great depression…and has lead to the ruinous policies that our government is STILL FOllowing!

The chickens have come home to roost…

And,

Keynesian economic model doesn’t work. It has never worked for any length of time it’s been used. Because you can’t spend money you don’t have for any lenght of time. Eventually, as Margaret Thatcher showed in the 1980’s, eventually you run out of other people’s money.


We’ve run out of other people’s money. It’s well past time that Congress, MUST cut ALL programs across the board by 20%…or more. As a moderate/conservative type, even I recognize that the DoD budget must be reduced by roughtly the same amount. However, it’s the massive and growing entitlement programs that will bankrupt our country…within the next 9 years…or sooner.

We have to grab Congress by the balls, and squeeze, hard. They have to understand that Congressionnal business as it’s been practiced in Washington for the psat 70+ years, MUST STOP NOW.

The Tea party movement gave the GOP ahuge majority in the House, and may well do so in the Senate…if they don’t fuck it up. I think they will.. They certainly did this over the recent battle of continueing resolution. Claiming a $38 billion cut…that turns out to be $395 million isn’t just a betreyal of the Tea Party movement that gave them their majority, it’s a repudiation. Every leader of the GOP in Congress must be face a significant challenger in their primaries next year, if only to show that We The People are serious in our resolve to end business as usual…the future of America demands that something must be done now…because if we wait too much longer, then the austerity measures will be truly ruinous.

Because of the QE2...we are now entering a period of inflation (not the "government's 'core' model") which doesn't actually reflect reality, but what is really occuring.  Gasonline is getting vastly more expensive, rising bby a 25% inflation rate over the past couple of months.  Retail food is rising at about 12% monthly...not annually.  This impacts the poor and the middle class hardest.  This is what killed James Earl Carter's attempt at gaining a 2nd term.  If price for basic commodities continues to rise at this rate, Barack Hussein Obama, will be ranked with Jimmy Carter and James Buchanan as one of the worst presidents of US history.

Inflation

Once upon a time, my wife and I were members of the middle class...then came the economic meltdown of late 2008.  Since then, we've been barely ekeing  by with less than half what were making prior to October 2008.  Only at the beginning of this year was I able to find full-time work.  My wife yet has...to obtain a job that will give her more than 40 hours a week.  Karen-Anne  Shiver has an excellent desciption of just what inflation means.

Inflation stalks like a thief in the night, filling the nightmares of homemakers and breadwinners alike.


Inflation is the invisible beast that steals the long-awaited raise before it has a chance to hit the bank account.

Inflation is the disease that ravages the arduously saved dollars of decades.

Inflation is the bandit that steals from the poor while hardly ever even noticed by the likes of the politicians who guilefully prod its crime spree.

Inflation is the monster who gobbles up the goodies of responsible citizens no matter their station.

So, when Obama and Bernanke and all the Fed gurus like Mr. Dudley put their little heads together and formulate a monetary policy, it would really be nice if they remembered — just once — that while the iPads and the Guccis and the golf clubs they love so much are simply wonderful if they cost a little less, the rest of us do have to worry about the rising cost of our groceries and our gas.

In our world, the necessities of life don’t get paid for with other people’s money.

We in the middle class pay the most taxes and fuel the government engine.

It would be nice if we weren’t told to eat our iPads when we notice that our government has set out to deflate the middle class.

But the most telling part is this:

ObamaCare alone has caused a nearly 40% hike in insurance premiums for individual policies such as the one my self-employed husband and I have. The Democrats’ save-the-deadbeats credit card law caused an immediate rise in interest rates for us always-pay-on-time consumers to cover the cost of the mandated write-offs.

The company I work for...offers a great insurance plan, that doubled in cost on January 1...from $248 per month to over $526.  Think about just how much of a pay check that eats up when you make $17 hour.  Now with a huge increase in both food and gas costs, our barely getting by has placed us back in the "oh shit, how are we going to pay for..." category.  Thanks a lot Washington.