Obama Sees No Silver Bullet to Bring Down High Gasoline Prices

"Now, whenever gas prices shoot up, like clockwork, you see politicians racing to the cameras, waving three-point plans for $2 gas. You see people trying to grab headlines or score a few points. The truth is, there's no silver bullet that can bring down gas prices right away," he said.
http://news.yahoo.com/s/nm/20110423/ts_nm/us_obama_energy_1

Hedge Funds, McDonalds and Wal-Mart

Although QE2 has helped some segments of the economy and jump-started the stock market, it has had important negative implications as well. Since that time commodity prices have soared while long-term interest rates have climbed and the dollar has weakened.  The rise in food and energy prices has caused top-line inflation to increase faster than wages, resulting in declining real income.  In addition it has resulted in higher inflation in developing nations as well as the EU, causing them to raise interest rates at the risk of slowing down global growth.  Some nations have also instituted capital controls to prevent too many dollars from entering.  It is also likely that rapidly rising food and energy prices played an important role in engendering unrest in the Mid-East.

The coming end to QE2 is potentially negative for both the market and the economy.  By the time it ends on June 30^th the Fed will have bought an average of $3.8 billion of Treasury bonds every working day of the week.  That amounts to about 70% of all the Treasury bond issuance since Mid-November.  The proceeds, which went to the banks that sold them, were then used to buy up assets, mainly stocks and commodities.

http://www.comstockfunds.com/default.aspx?act=Newsletter.aspx&category=MarketCommentary&newsletterid=1581&menugroup=Home

McDonald's is warning of inflation in food prices:

McDonald's Corp forecast higher prices for beef, dairy and other items and said it would cautiously raise prices to keep attracting diners, who are grappling with higher grocery and gas bills.

Inflation is "going to be serious," Wal-Mart U.S. CEO Bill Simon said during a meeting with USA TODAY's editorial board. "We're seeing cost increases starting to come through at a pretty rapid rate."

CNBC reported yesterday:

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

http://georgewashington2.blogspot.com/

***

Interesting. Comstock Hedge Fund warns of a recession if Bernanke stops printing money and monetizing US debt. Craig Johnson from Customer Growth Partners warns that if Bernanke keeps printing and monetizing debt, inflation will push the US into a recession. What if they're both right?



Soon the Middle Class Will be Forced to Work Longer for Social Security and Pay More for Less in Medicare

According to a report from the AFL-CIO, in 2010 CEOs earned about $11 million on average, about 343 times the average pay of the rest of the country, highlighting the blatant economic inequality in America.

"Despite the collapse of the financial market at the hands of executives less than 3 years ago, the disparity between CEO and workers' pay has continued to grow to levels that are simply stunning," said Richard Trumka, AFL-CIO president.
In 1980, CEO pay was only at 42 times what the average American made, according to the AFL-CIO. This reaffirms data from sources such as the CIA World Factbook.
http://www.economyincrisis.org/content/ceo-pay-now-343-times-higher-average-american

All income growth for the last forty years has gone to the top 10%

Bernanke, US Dollar and Oil Prices

Obama and Holder are forming a "task force" to investigate rising gas prices. Laughable and ludicrous. Oil is priced in US dollars, Bernanke prints dollars to monetize US debt, US dollar weakens. Voila! Gas prices rise. It's not that hard. Red line oil prices, blue line US dollar.
http://www.cbsnews.com/stories/2011/04/21/politics/main20056202.shtml

The U.S. and Bernanke Showing Their Love for Those Less Fortunate

Update: SHANGHAI, April 22 (Reuters) - Striking truck drivers protested for a third day on Friday in Shanghai's main harbour district amid heavy police presence and signs the action has already started to curb exports from the world's busiest container port.
The strike is a very public demonstration of anger over rising consumer prices and fuel price increases in China.
http://www.reuters.com/article/2011/04/22/china-strike-idUSL3E7FM09J20110422

KAMPALA, Uganda — Riots broke out in downtown Kampala on Thursday as another round of street demonstrations over commodity prices spread
http://www.nytimes.com/2011/04/22/world/africa/22uganda.html?hp

SHANGHAI (Reuters) - A two-day strike over rising fuel prices turned violent in Shanghai on Thursday as thousands of truck drivers clashed with police, drivers said, in the latest example of simmering discontent over inflation.
http://af.reuters.com/article/worldNews/idAFTRE73K2F120110421?pageNumber=1&virtualBrandChannel=0&sp=true

Simulacrum - a mere image or one that does not represent the reality of the original

Total non farms jobs in the US are at same level as in 2004 though over eleven million new workers have entered the work force over that time frame.





All income growth from 1971 to 2008 went to the top 10% of wage earners. Income for bottom 90%, when adjusted for inflation, has been stagnant for the last forty years.

Total credit market shows all growth for bottom 90% was debt.

Percent of US workers employed full time is at levels not seen since 1984.

How can wages be flat for the bottom 90% over the last forty years when corporate profits have increased by 800%?

And corporate profit margins have tripled.

The end stage of this latest manifestation of free market capitalism is on the door steps of the US. It's a matter of when, not if. When it does happen, most will say,"it happened so fast, overnight," but it's been going on, heading for the endgame over the last forty years.

Post inspired by:

http://www.oftwominds.com/blog.html

AG Holder is a Moron

 "If illegal conduct is responsible for increasing gas prices, state and federal authorities should take swift action," Holder said in a statement.
http://www.marketwatch.com/story/oil-and-gas-fraud-task-force-formed-by-a-g-holder-2011-04-21-1227580?link=MW_home_latest_news

Lets Form a Committee, Spend $100 Million, Pay Back our Largest Campaign Donors with a Position on the Committee that Pays Well, all in Order to...

tell children that if an earthquake strikes, get under your desk.
http://thehill.com/homenews/administration/157159-white-house-readies-us-shake-out-to-prepare-citizens-for-earthquakes

MEXICO CITY (AP) - Investigators found 26 badly decomposed bodies at a vacant lot in the northern Mexico state of Durango on Wednesday and said they were looking for more.
The grisly Holy Week discovery came just days after police found 10 complete bodies, three headless bodies and four severed heads in a pit in Durango, a state that has become a battleground between the Zetas and Sinaloa drug cartels.
http://apnews.myway.com/article/20110421/D9MNPUCG1.html

Bureau of Alcohol Tobacco and Firearms Sells AK-47's to Mexican Drug Cartels

Two of the AK's sold to the drug dealers by the ATF were found next to the dead body of Border Patrol Agent Brian Terry. Mr. Terry was killed on December 15, 2010.
 http://www.odmp.org/officer/20596-border-patrol-agent-brian-a.-terry

The ATF claims the sale of assault rifles to the Mexican drug cartels was part of a sting operation. The ATF is now accused of with holding documents from a House Oversight committee.
ATF Sold Assault Rifles to Mexican Drug Cartels

Bernanke. The Wrongest Man in the World.

Bernanke. March 1, 2011: "Bernanke said the rise in oil and global commodities prices was due to stronger demand from fast-growing countries like China, not to the Fed's stimulative policies."
http://news.yahoo.com/s/ap/20110301/ap_on_bi_ge/us_bernanke_economy

Saudia Arabia Oil Minister. April 17, 2011: "Saudi Arabia's oil minister said on Sunday the kingdom had slashed output by 800,000 barrels per day in March due to oversupply, sending the strongest signal yet that OPEC will not act to quell soaring prices."
http://news.yahoo.com/s/nm/20110417/ts_nm/us_saudi_oil

Bernanke claims his money printing policies have nothing to do with increase in oil prices. He claims it is all demand driven. Six weeks later, the largest oil exporter in the world says they have slashed output due to over supply. Below is the price chart for oil covering the last five days. Mild sell off when Saudi announced slashing of output. Then a spike back up that surpassed previous high prior to announcement from Saudi Arabia of decreasing output due to over supply. How can Bernanke be right? What has Bernanke been right on during his tenure as Fed Chief?

Middle Class Must Work Longer for Social Security and Pay More for Less in Medicare

http://www.alepisaball.com/pay-your-taxes-these-10-companies-didnt/

You Think?

WASHINGTON (MarketWatch) — The Federal Reserve on Tuesday proposed requiring banks to ensure borrowers can repay their mortgages before they give them a loan.
Hurry! Close the Barn Doors. The Horses Have Escaped!

By 2010, roughly 90 percent of all new mortgages issued in this country went through the U.S. government. For all intents and purposes, the $1.5 trillion U.S. mortgage market is now a government-run industry. The bail outs of Fannie and Freddie have cost US Taxpayers over $150 billion.

http://wap.npr.org/news/Business/134863603

Keep the Campaign Donations Flowing AIPAC. We Got Your Back.

"In the aftermath of Israel's 2008-2009 intervention into the Gaza Strip, Susan E. Rice, the U.S. ambassador to the United Nations, led a vigorous campaign to stymie an independent U.N. investigation into possible war crimes..."
/
"Israel launched a three-week-long offensive into Gaza in late 2008 in an effort to prevent Hamas and other Palestinian militants from firing rockets at Israeli towns. The Israel Defense Forces killed as many as 1,400 Palestinians."
/
"In response, Ban commissioned a top U.N. troubleshooter, Ian Martin, to set up an independent U.N. board of inquiry into nine incidents in which the Israeli Defense Forces had allegedly fired on U.N. personnel or facilities."
/
"On May 4, 2009, the day before Martin's findings were presented to the media, Rice caught wind of the recommendations and phoned Ban to complain that the inquiry had gone beyond the scope of its mandate by recommending a sweeping investigation."
/
http://www.washingtonpost.com/wp-srv/special/world/wikileaks/cable23.html
http://www.washingtonpost.com/wp-srv/special/world/wikileaks/cable21.html
http://www.foreignpolicy.com/articles/2011/04/18/special_relationship?page=0,0

Barack W. Obushma

On the nation's finances, the man who once ripped Bush as a failed leader for seeking to raise the nation's debt ceiling now wants to do it himself.
On terrorism, he criticized Bush for sending suspected terrorists to Guantanamo Bay, Cuba, and denying them access to U.S. civilian courts. Now he says he'll do the same.
On taxes, he called the Bush-era tax cuts for the wealthy wrong, and lately began calling again to end them. But in December he signed a deal with Republicans to extend them for two years, and recently he called the entire tax cut package good for the country

And on war, as a candidate he said that the president didn't have authority to unilaterally attack a country that didn't pose an imminent threat to the U.S., and even then the president should always seek the informed consent of Congress. Last month, without a vote in Congress, he attacked Libya, which didn't threaten the U.S.
/

"Increasing America's debt weakens us domestically and internationally," Obama said in 2006. "Leadership means that 'the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership."
I am the Black Mascot of Wall St.

Benanke is a Murderer, (He's Killing the Middle Class), He is also a Coward and a Thief

March 1, 2011:
"Bernanke said the rise in oil and global commodities prices was due to stronger demand."
Bernanke Blames Increased Oil Prices Solely on Demand, Not the Weakening Dollar

April 17, 2011:
(Reuters) - Saudi Arabia Oil Minister Ali al-Naimi said on Sunday the world oil market was oversupplied and that the kingdom had reduced production in March due to weak crude demand.
Five Dollar a Gallon Gas by Summer?

Just Another Saturday in Mexico

Beheaded and Quartered. Very Graphic.

Two Beheaded in Chihuahua. Very Graphic.