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Posts Tagged ‘Obama Economy’

Inflation Near 10% Using Old Measurment System

by Iron Fist ( 193 Comments › )
Filed under Economy, Misery Index at April 13th, 2011 - 11:00 am

That is right, people. Check this out, from CNBC of all places:

After former Federal Reserve Chairman Paul Volcker was appointed in 1979, the consumer price index surged into the double digits, causing the now revered Fed Chief to double the benchmark interest rate in order to break the back of inflation. Using the methodology in place at that time puts the CPI back near those levels.

Inflation, using the reporting methodologies in place before 1980, hit an annual rate of 9.6 percent in February, according to the Shadow Government Statistics newsletter.

Since 1980, the Bureau of Labor Statistics has changed the way it calculates the CPI in order to account for the substitution of products, improvements in quality (i.e. iPad 2 costing the same as original iPad) and other things. Backing out more methods implemented in 1990 by the BLS still puts inflation at a 5.5 percent rate and getting worse, according to the calculations by the newsletter’s web site, Shadowstats.com.

So in other words we are being lied to when they say there is no inflation. We all knew that. We know we are paying more for less at the grocery store and at the gas pump. We see the changes when the $3 Car Wash changes its price to $4, too. The signs of high inflation are all around us, and we see them. We aren’t blind, and this is something that hits everybody, the poor (whom the Democrats claim to love) the hardest. You have to have food and energy, no matter who you are.

Teh Obama Boom™ Goes Global

by Iron Fist ( 248 Comments › )
Filed under Africa, Economy, Environmentalism, Misery Index, Transportation, World at February 3rd, 2011 - 2:00 pm

Normally, when we think of the Obama Boom™ we think of high unemployment and the still-collapsing housing/construction market. All of that is still going on, but I have been coming across reports that disturb me from another direction. There is strong evidence that inflation is on the move. When the government reports inflation, it deliberately does not include the food and transportation markets. The theory with transportation is that these costs are passed down to the consumer and are thus counted as inflation on down the supply chain. Food, I am not so sure about why, but they don’t include it. But it is the food market that concerns me. Check out this report in the London Telegraph:

Global food prices have hit a new record high, amid fears that the escalating cost of bread and meat is adding to the turmoil in the Middle East.

By Harry Wallop, Consumer Affairs Editor 10:56AM GMT 03 Feb 2011

The United Nations Food and Agriculture Organization (UN FAO) gave warning that the high prices, already above levels in 2008 which sparked riots, were likely to rise further.

The FAO measures food prices from an index made up of a basket of key commodities such as wheat, milk, oil and sugar, and is widely watched by economists and politicians around the world as the first indicator of whether prices will end up higher on shop shelves.

The index hit averaged 230.7 points in January, up from 223.1 points in December and 206 in November. The index highlights how food prices, which throughout most of the last two decades have been stable, have taken off in alarming fashion in the last three years. In 2000 the index stood at 90 and did not break through 100 until 2004.

Surging food prices have come back into the spotlight after they helped fuelled protests that toppled Tunisia’s president in January. Food inflation has also been among the root causes of protests in Egypt and Jordan, raising speculation other nations in the region would secure grain stocks to reassure their populations.

Abdolreza Abbassian, an economist at the FAO, said: “The new figures clearly show that the upward pressure on world food prices is not abating.

This is not good. While rising food prices may not be “inflation” to the economists, one thing that everyone must buy is food. When the price goes up, it pinches everyone. The poor, naturally, are the hardest hit. This is not good news in an America where we are struggling with Depression-level unemployment, but here, at least for now, we have a solid safety net. Between food stamps and food banks, people aren’t going to starve in America unless things get far, far worse than they have ever been. In the Third World, though, starvation is a real option. One that more people will be faced with as this goes on. I don’t know much that we can do to help, but there is one thing that we are doing that contributes directly to this catastrophe: the use of grain for ethanol for fuel. Not only is this bad for fuel economy. Not only does it waste billions of taxpayer’s dollars in the name of the false religion of Environmentalism. No, ethanol does not stop there. By taking grain that would otherwise be available for food, the use of ethanol raises the price of grain worldwide. America used to export grain to the world. We were, in a real sense, the world’s breadbasket. Enviro-Green policies have changed this. Now we burn 10% of every gallon of gas as ethanol, all across the country, for all road transportation. The end result: starving babies in Africa. Big Green wants babies in Africa to starve in the name of saving Mother Gaia from the Global Warming® Hoax. And I thought the Leftists were supposed to be the humanitarians.

Update:
Things aren’t going to get any better any time soon. The Wall Street Journal reports:

The global wheat market is caught between freezing winds and a sirocco. Prices, up 13% since the start of December, likely will keep rising.

Still more non-inflation that will hurt everyone’s bottom line. Everyone who eats, at any rate.

Next On Obama’s Agenda

by Iron Fist ( 126 Comments › )
Filed under Barack Obama, Economy, Elections, Elections 2010, Elections 2012, Politics at November 24th, 2010 - 8:30 pm

It seems that Dick Morris and I share the same take on Obama’s next moves: moving farther to the Left and ruling by Executive Order. Morris takes it farther than I, though, and speculates on the next moves in specific:

Does President Obama plan to move to the center in response to his overwhelming rejection at the polls on Nov. 2? No way! Instead, he is moving to implement, through executive action, two of the most controversial items in his 2010 agenda — a carbon tax and pollution permit system and a ban on the use of secret ballots in union elections.

Through executive action by the Environmental Protection Administration (EPA) and the National Labor Relations Board (NLRB), the Obama administration is planning to effectuate both policies without asking Congress.

Source

This is credible. He has already asked the EPA to do this, so I think we will see implementation of this next year. Morris goes into detail about what impact this will have on the US Economy:

The EPA is currently soliciting public comments for its plan to use the Clean Air Act of 1970 to regulate carbon dioxide emissions. The Clean Air Act, as the name indicates, is designed to fight against pollution — unhealthy chemicals that are belched into the air by smokestacks. It was passed to fight sulfur dioxide, particulates, nitrous oxides and other chemicals that cause human diseases. To use it to fight carbon dioxide — which we all breathe without ill effects — because of concerns about global warming is a perversion of the law.

Worse, because the Clean Air Act is designed to protect public health by measuring aggregate pollution in each geographic area, it limits economic development in communities where the pollution levels exceed prescribed standards. But carbon dioxide doesn’t poison anyone. It makes no sense to ban factory expansion in areas where the nature of the industries is that there will be high carbon dioxide levels (like oil area of Texas and Louisiana). But that’s what the EPA plans to do, virtually making economic growth illegal in large parts of the United States.

This is bad. We know the Obama Administration has no problem killing jobs. We saw that with the moratorium on offshore drilling that devistated the economy of the Gulf Coast. It will take far longer to get over the effects of the moritoriu than it will the effects of the BP oil spill. Those rigs that moved for friendlier waters will not be coming back soon.

As bad as this is, Obama has more planned. According to Morris (who usually has pretty good sources for this kind of thing) Obama intends to use executive power to implement the infamopus “Card Check” Union voting system that does away with secret ballots on Unionization issues:

Meanwhile, Craig Becker, the former chief counsel of the Service Employees International Union (SEIU) — now the head of the NLRB — has secured a 3-2 party line majority to repeal the Dana decision, which mandates secret ballots in unionization elections. The NLRB will rule that if a majority of workers check off that they want a union on cards, then the union will automatically be approved without a secret ballot vote of the entire workforce.

Currently, if a majority of the workers sign the cards, a secret ballot vote is then triggered. Frequently, the union loses these elections, proving that the card check-off is subject to coercion and bullying. The Democratic majority in the Senate wouldn’t approve the card check change, so the NLRB is planning to accomplish the same objective administratively, trapping workers into unionization they would reject if afforded the opportunity to vote by secret ballot.

What are the results of these two measures? Fewer jobs in America. Obama is trying to get our unemployment rate up, because we know how awful it is to have it this low. At least we aren’t in the Awful Bush Years when unemployment was under 5%. Now that was terrible.

Morris predicts dire consequences for Obama from these actions:

Obama will live to regret these moves. Republicans in the House will de-fund these actions and insert legislative language making it a crime to spend appropriated funds to implement them. By this strategy, all of the controversial Obama legislation will be at issue during the budget fight — taxes, Obamacare, cap and trade and card check. The more these issues are inserted into the budget fight, the greater the chances of Republican victory.

I don’t agree here. The Republicans only control the House. They don’t control the Senate, and they don’t have veto-proof majorities in either house. To actually over-rule an Executive Order, it requires a law to pass both Chambers, which the President will then veto (he wouldn’t have issued the EO if he wasn’t going to defend it), and then both houses have to override that veto. That is not possible in the current congress. As for Morris’ scenario of passing legislation defunding these measures, these again have to pass both Houses (can you really see the Senate doing this? I can’t), and weather the threat of a Presidential veto. I don’t think it is realistic to expect the Republicans to be able to pull that off. They simply do not have sufficient control of the Legislature to do it. Thus, unless Obama alienates enough Democrats to make such a strategy viable, Obama’s Orders will stand as the law of the land for at least two years.

I do agree with Morris on this:

So President Obama has not learned the lessons of 2010 and likely never will.

The question is, have the 23 Democrats up for re-election from Red States in 2012 learned the lesson of 2010? The fate of the nation, for the next two years at least, may resto on the answer to that question.