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Monday, April 25, 2011

Obama's Solution To High Gas Prices

Note to readers: Due to my work and caregiving schedules, I will be posting less frequently than usual.

With thanks to Stogie of Saberpoint for the graphic below:

Stogie's post is HERE.

Get ready for America's economy to hit the skids and squeeze us all until our belly buttons rub against our backbones (gasoline prices now higher as the excerpt below is dated April 21, 2011):

Killer Combo of High Gas, Food Prices at Key Tipping Point

The combination of rising gasoline prices and the steepest increase in the cost of food in a generation is threatening to push the US economy into a recession, according to Craig Johnson, president of Customer Growth Partners.

Johnson looks at the percentage of income consumers are spending on gasoline and food as a way of gauging how consumers will fare when energy prices spike.

With gas prices now standing at about $3.90 a gallon [What is the price right now where you live?], energy costs have now passed 6 percent of spending—a level that Johnson says is a "tipping point" for consumers.

"Energy is not quite as essential as food and water, but is a necessity in today's economy, and when gasoline costs more than bottled water—like now—then it takes a huge bite out of disposable spending," he said, in a research note.

Of the six US recessions since 1970, all but the "9-11 year 2001 recession" have been linked to—of not triggered by—energy prices that crossed the 6 percent of personal consumption expenditures, he said. (During the shallow 2001 recession, energy prices had risen to about 5 percent of spending, which is higher than the long-term 4 percent share.)...

[...]

"The combined increase in the necessities of food and energy creates a harsh double whammy for already stressed consumers," Johnson said. The last time this happened was in the recession that lasted from 1973 to 1975.

Johnson estimates that food and energy eat up about 15 percent of consumer spending at today's prices, compared with about 12.7 percent two years ago.

Of course, at lower income levels, these percentages are much higher....
More HERE at CNBC.

When gas prices climbed in 2006 under the Bush administration, George W. Bush got the blame.

Where is similar blame for Obama now as gas prices continue to soar?

And what will our heating bills in the Northeast look like when cold weather arrives this fall and winter? The price of oil will affect those heating costs, too. The pain at the pump is just the beginning of the economic damage soaring oil prices cause!

Apparently, the American people weren't listening back in May 2008 when Obama said:
“We can't drive our SUVs and eat as much as we want and keep our homes on 72 degrees at all times ... and then just expect that other countries are going to say OK. That's not leadership. That's not going to happen.”
America, you had fair warning. But you voted Barack Hussein Obama into office anyway, thereby promoting the elimination of the middle class.

48 comments:

  1. The media will never blame Barry and his ilk for the policies creating this mess. Unfortunate...

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  2. Get yourself a "Tarabant " ! It is an automobile that was produced by former East Germany.. It has electric defrosting element in its rear window !... You can worm your hands while pushing !...

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  3. Alexander: We have our Trabant. It's called the Chevy Volt! Made by a state-run factory and everything!

    The press may give him a pass, but voters (and drivers) will blame Obama, and he deserves it.

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  4. A good friend and CPA advises to get ready for the worst inflationary period in US history; as the value of the dollar continues to drop, the cost for goods and services will skyrocket. He thinks the solution is investment in gold and silver, but how many of us can afford current prices for precious metals? I think the solution is credit cards; I have no problem paying off debt with worthless money. I don’t know how any thinking American can believe we need four more years of Barack Obama, but a substantial number of voters, including the so-called independents, do think that. And what has the right offered us? Chaff …

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  5. In Chicago according to my parents it is hitting an all-time high peaking over $6.00 a gallon. I think we need to do a lot of walking and bring back those horses and buggies. I am believing that the Amish have at least that part right! *HEH*

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  6. As Layla mentioned, prices for gasoline in Chicago are up the in the stratosphere. In fact, Chicago prices for gasoline are the highest in the nation.

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  7. Sam,
    For a long time, Mr. AOW and I were in the coin business. We've ridden the Rollercoaster of Precious Medals. Typically, that particular market is not necessarily governed by the rules of supply and demand, but rather controlled by "the big boys."

    Right now, the precious-medals market is seeing a lot of panic buying. Been there, done that -- as the wholesale seller and retail seller, that is.

    I have no problem paying off debt with worthless money.

    And those of us who are (1) on fixed incomes or nearly so and/or (2) have already paid off our debts are in a sorry position now.

    I do wonder how local governments are going to survive the coming economic train wreck. So many retirees underfunded. Those schoolbuses to run at a much higher cost of fuel. Honestly, I expect local politicians to vote themselves a raise.

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  8. From Praesidium Respublicae comes this reminder:

    Meanwhile, we wonder if Americans remember when Obama took office in January 2009, the average cost of a gallon of gasoline was $1.84; today, that cost has increased 108%. Finally, if it is true that the Saudis have reduced oil production by 13% to punish America for Barack Obama’s sophomoric foreign policy in Moslem countries, we should recall that a 13% decline in production is almost miniscule when compared to world-wide oil production.

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  9. As Mr Huntington points out, let's consider gold and silver for a moment, as opposed to brass and lead.

    If things turn terrible, I mean torches and pitchforks terrible, Weimar Republic terrible, riots terrible, gold and silver won't do you a thing. You're not going to trade a Krugerrand for a loaf of bread -- unless you have an unlimited supply of Krugerrands. Gold and silver are dead chunks of metal that are useful only when the economy is depressed or recessed and not totally into the toilet where bartering occurs. Gold and silver, whilst nice, is only useful on the "getting out and getting much better" stage. And only when people realize its value. It's worth what people say it's worth. It's a good hedge, but it's not the ultimate panacea that many advertisers on Conservative radio and TV would have you think. And many of those advertisers, if you discover, won't actually SEND you the "gold," you send them cash and they'll "hold" the gold FOR you.

    RIGHT.

    Be wise, people, in these coming times.

    BZ

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  10. BZ,
    Excellent comment on all points!

    Mr. AOW and I dealt in physical merchandise -- not paper (futures, etc.). Let me tell you: Carrying gold around in quantities will break your back!

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  11. Yet another indication as just to how much the Obama administration is looking out for Americans during this period of escalating oil prices. From this source:

    Energy in America: EPA Rules Force Shell to Abandon Oil Drilling Plans

    Shell Oil Company has announced it must scrap efforts to drill for oil this summer in the Arctic Ocean off the northern coast of Alaska. The decision comes following a ruling by the EPA’s Environmental Appeals Board to withhold critical air permits. The move has angered some in Congress and triggered a flurry of legislation aimed at stripping the EPA of its oil drilling oversight.

    Shell has spent five years and nearly $4 billion dollars on plans to explore for oil in the Beaufort and Chukchi Seas. The leases alone cost $2.2 billion. Shell Vice President Pete Slaiby says obtaining similar air permits for a drilling operation in the Gulf of Mexico would take about 45 days. He’s especially frustrated over the appeal board’s suggestion that the Arctic drill would somehow be hazardous for the people who live in the area. “We think the issues were really not major,” Slaiby said, “and clearly not impactful for the communities we work in.”

    The closest village to where Shell proposed to drill is Kaktovik, Alaska. It is one of the most remote places in the United States....

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  12. Gas, food, everything seems to be skyrocketing. Obama is stuck on 'green' energy, like the new wind turbines the government (you and me) is funding, "made in China". So much for those green jobs. What a sad joke on the American people.

    Debbie
    Right Truth
    http://www.righttruth.typepad.com

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  13. The EPA should be stripped of its power over drilling rights immediately and Shell allowed to continue its business. This is outrageous.

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  17. This is insane. Seriously, this green/eviromental nonsense is ruining this country! though, isn't that the point?

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  18. My guess would be tha t high gasoline prices are due to: Fallin dollar, Middle-ast unrest and, Speculation in that order.

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  19. I sincerely doubt Obama feels my pain and the pinch at the gas pump, actually it is more than a pinch it is a punch in the face.

    He is all talk and will do nothing. Business as usual.

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  20. Put a metal tip on that sail and wait for lightning to strike for more power. Unfortunately, this picture perfectly represents the efficiencty that is wind power, with which Barry is in love.

    Any person with appropriately firing neurons knows the solution to the high gasoline price problem, too bad the nimrods in Washington haven't fired up the ol' brains in quite some time.

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  21. That picture would be a lot funnier if greenies didn't actually want to do that...

    Hope you had a lovely Easter, AOW!

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  22. The Age of America has long been ended! Very sad imho!

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  23. America, you had fair warning. But you voted Barack Hussein Obama into office anyway, thereby promoting the elimination of the middle class.

    Bottom line, Obama tried to tell everyone how much of an idiot he was. If only people had listened.

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  24. Folks, you're overreacting to all this. I know its what people are talking about around the water cooler, etc. But you've got it all wrong, you are not seeing the whole picture.

    How do I know? Simple. Obama has been hitting the links lately. He's just made a special trip to appear on Oprah's show (again). The White House continues to be party time" with a host of celebrities.

    If things were really that bad, would our president be behaving in such a cavalier manner? I think not. He loves the American people and our way of life. He as much said so in his special Easter address to the Christians of the nation.

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  25. The MSM will never blame Barry. But, people will put 2+3 together at the polls on election day. Or, will that be 2+5?

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  26. I take it that the bloom is back on the rose already? Blogging is addictive, I should know. I have this belief that my opinion is really the only one that actually counts even if the world insists on refusing to recognize my incredibly sage acumen, and I keep presenting it knowing that sooner or later everyone has to discover the vast trove of deeply enlightened wisdom I've deposited like so many pigeon splurts on the ethereal corpus of the Internet.

    Anyway, welcome back.

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  27. I wish conservatives would go after corporate sponsors like the leftists went after Beck's.

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  28. Black Sheep,
    The blogging bloom isn't really back on rose. I'm not going to post every day for the foreseeable future.

    I did, however, manage to get a few posts queued up toward the end of my Easter break -- once I got some of the personal matters under control.

    But the final weeks of the 2010-2011 school term is upon me -- with out-of-town company coming, to boot.

    I had to LOL when I read this part of your comment: pigeon splurts on the ethereal corpus of the Internet. We are preaching to the choir with out blogs. I know that. But we're addicted and hopeful, so we slog on.

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  29. The recession has already hit my house with a vengeance. We use Fuel oil here to heat our house and our water. The fuel oil supplier company will deliver 150 gallons of fuel oil minimum. Last time I checked (a couple of weeks ago), that's $566.00!! Minimum!!!

    Fortunately, I found out that Diesel fuel and fuel oil are basically the same thing, so, instead of paying more than I make for 150 gallons of fuel oil, I go down to the local gas station and fill a couple of 5 gallon gas cans with diesel fuel, and that is what we're heating our water with.

    Currently, we're debating which urgent bills we can pay and which we will have to let slide. I may not have the internet much longer, so if I suddenly stop posting blog posts and comments on others, you'll know why.

    Another symptom of recession is the lack of decent paying jobs which is the problem I'm having currently.

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  30. Mark,
    So, you heat with oil too. We here in this household heat with oil -- radiator heat, which is very efficient.

    I simply don't know how much more Mr. AOW and I can cut back to pay the rape prices of fuel oil.

    It's expensive to convert my home to natural gas, but at these oil prices, the conversion might be worth it.

    I hope that you can keep your Internet access, Mark! But, honestly, if one has to let some services go, Internet services is one of them.

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  31. Debbie,
    Green energy is not viable enough at this point to provide the services we are getting via other methods.

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  32. the party’s over, we had us a time
    everybody got loaded, everybody looked fine
    we emptied the coffers of water and wine
    the party’s over
    we had a good time

    we danced on the tables midnight til dawn
    til all the time was up and the good stuff gone

    the house is a shambles, broken glass in the streets
    guttering candles, blood on the sheets
    we burned all the kindling, passed the bottle around
    watched the last coals dwindling
    and the ice melting down

    we danced on the tables…

    the party’s over, we had a blast
    brought in the lawyers to cover our ass
    left a note for the children to clean up the mess
    the party’s over
    it was a big success!


    The Party's Over
    --Eliza Gilkyson

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  33. Actually, the Germans call the car Alexander Munch mentions above the TRABBI...ugly but functional!
    I was in Munich when the wall came down and Trabbis were there from E Germany within a few few HOURS. The W Germans were immediately putting roses on the hoods and food inside the cars the E Germans left unlocked (no dummies, they!) It was an amazing sight, a 'welcome' to their E German countrymen...(of course, the love fest didn't last$$$, but..!)
    Germans pay about $8 a gallon so the prices aren't freaking me out as much as they would, but it's BAD BAD BAD and I do gulp when I see the total here in LA...
    BUt, no worries...Obama never wastes a crisis and now he's doing more class warfare with the Oil Companies; convincing American dopes that the gas companies are the ONLY problem...oh, how gleeful his thugs must be to perpetuate that CORPORATIONS ARE ALL BAD nonsense. (@$(*#&$(&*(&

    Why doesn't anybody EVER mention on the media that it's Republicans who kept saying WE MUST DRILL OIL HERE! Sort of like when Bush tried to warn about the housing crisis... silence

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  34. Ya, DUcky, and if the left hadn't given out so many freebies, maybe the party wouldn't be over?

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  35. It is good to take some time off- will be back to see if you have a new post or two...
    Hugs-
    Carol-CS

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  36. Can hardly wait to get behind the wheel of one of GE's new sail-cars. New York to California in under 3 months--just like 1849.

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  37. TO ALL:

    I plan to post once or twice a week.

    The deluge of papers I have to grade from now until the end of the school term is priority one.

    I am making limited blog rounds as time allows and reading all comments via email notification.

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  38. The only problem?

    Hardly. Speculation is a problem and Obummer, like Bush, has been very kind to speculators.

    The weak dollar, made necessary by the Wall Street free-for-all is also a serious problem. However the alternative is wider inflation so there's no win there.

    But just drill some more, right z? That will take care of everything. Simple answers make the right feel good.

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  39. Obama makes me sick. Did you see his other attempt today at producing another messed up, photo shopped piece of worthless paper and had the nerve to say it is his birth certificate? OMG! Why is he worried now that it is creating controversy...he should of thought about that three years-ago. Louse liar!!!!

    Sorry for the off topic, but wanted you to know about it! UGH!

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  40. Layla,
    I saw that Obama has released a certificate. I managed to watch a few minutes of his statement but couldn't endure watching the entire statement because of his attitude with all of his smirking, grinning, etc.

    Of course, I haven't had time to read much about this new piece of paper from BHO, but I did see THIS early this morning.

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  41. That's it blame the speculators. Those mean nasty rich guys investing their money. Never mind that our energy policy is as well thought out as our policy with respect to Syria and Libya.

    If I could would I be speculating on energy...damn straight.

    You would have to be a moron not to with this President who thinks that stopping oil and natural gas production is not some how going to cause prices to do up for the little guys.

    I also find it out that the leftist party ie the Democrats claim to tbe party of the people and they blame Wall Street meanwhile they are shoveling money out the side door to companies and printing money left and left. Even a grade school education would tell you that extra money creates inflation and the illusion of economic activity as businesses records increasing profits with cheaper jobs.

    I am not interested in seeing his birth certificate, I want to see who signed off on his dipolma probably george soros

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  42. The car with a sail is pretty funny, but I have a more practical idea. If we really want to do something effective about Obama's fuel price fiasco, let's start with putting the blame back where it belongs - on Obama and his administration - and keeping it there until 2012 and beyond:

    Gas Pump Activism: Print This Poster!

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  43. Blogginator,
    Here's what I fail to understand: why normally-reasonable people cannot see that Obama is doing everything he can do not to bring down the cost of energy, gasoline in particular.

    I find that such people as I mentioned above WILL NOT accept that Obama is shirking his duty as President. In my own family, I'm having heated debates and cannot get these family members to blame anybody but the oil companies and "the rich" in general. Never mind that some of my family members are making high 6-figure salaries. They say, "We can afford higher taxes. We can afford more expensive energy."

    But the fact is that many Americans, including myself, CANNOT afford this increased cost of living.

    Meanwhile, of course, Obama jets all over the place campaigning. And the family members I mentioned above don't see that his elitism is a huge part of America's problem.

    My despair grows every day.

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  44. 1389,
    Thanks!

    I'm going to work on posting that poster here at my web site.

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  45. I can't invest in alternative energy. I spent all my money on gasoline.

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