-
Misery Index: Barack Obama is a One Term Jimmy Carter Type President?
If the Misery index of unemployment and inflation is the harbinger of election 2012, Barack Obama will NOT be re-elected.When it comes to measuring the combination of unemployment and inflation, it doesn’t get much more miserable than this.
In fact, misery, as measured in the unofficial Misery Index that simply totals the unemployment and inflation rates, is at a 28-year high, reflective of how weak the economic recovery has been and how far there is to go.
The index, first compiled during the soaring inflation days of the 1970s by economist Arthur Okun, is registering a nausea-inducing 12.7—9.1 percent for unemployment and 3.6 percent for annualized inflation—a number not seen since 1983. The index has been above 10 since November 2009 and had been under double-digits from June 1993 through May 2008.
But, President Reagan in the 1980’s had a plan to wring the misery out of the economy (created by President Jimmy Carter’s economic policies) – cuts in government spending, tax reform and tax cuts. Plus, Paul Volcker’s tight money policy at the Fed helped control inflation. I remember the high inflationary price pressures, high gold prices and rampant real estate speculation – plus, the gasoline lines under Carter.
Reagan won the election in 1980 with his plan to right the economy.
Without these policy changes and a dramatic improvement of the economy, Reagan would NOT have been re-elected in 1984.
President Obama knows what has worked in the past. He simply doesn’t believe these measures will work because of his political ideology of tax and redistribution of wealth.
-
Shocker: American Dollar Craters as Obama Debt Mounts
News Item: Dollar hits new multimonth low vs euro, pound, yenThe dollar kept falling Friday, notching fresh multimonth lows against the euro, pound and yen as a warning that Britain’s debt level may result in its credit rating being cut ricocheted into worries about the massive U.S. deficit.
The 16-nation euro rose to $1.4015 in morning trading from $1.3889 in New York late Thursday—its first time above $1.40 since Jan. 2.
The British pound rose to $1.5916 from $1.5890, peaking at $1.5945 earlier in the session, its highest point since Nov. 6.
Meanwhile, the dollar edged up to 94.51 Japanese yen from 94.23 yen—after earlier falling to 93.82, its lowest point since Feb. 23.
“The problem for the U.S. is particularly acute because of its reserve status,” said UBS analyst Brian Kim in an e-mail to investors Friday. Major holders of U.S. debt, such as Middle Eastern sovereign funds and the Chinese government, have not been shy about calling the U.S. out for what it sees as policies that will trigger inflation, shrinking the value of their Treasury holdings.
Well, no shit, Sherlock.
With the massive Obama government spending and debt there will be massive inflation and stagnant economic growth – just like the Jimmy Carter STAGFLATION in the 1970’s.
The solution then, as it is now, was the election of a conservative President (President Ronald Reagan), limited government, reduced federal spending and tax cuts.
Technorati Tags: Jimmy Carter, Barack Obama, Dollar, Inflation
-
Poll Watch: 85 Per Cent Worry About Inflation, 34 Per Cent Expect Interest Rates to Rise
Most Americans know inflation is right around the corner with the massive government spending plans of President Obama and the congressional Democrats.
Eighty-five percent (85%) of Americans say they are concerned about the possibility of inflation in the current economy, with 55% Very Concerned, according to a new Rasmussen Reports national telephone survey.
Just 11% say they are not very or not at all concerned about the prospect of rising prices. These numbers are identical to findings last August, despite the high level of government spending President Obama has announced in recent months.
Credit remains tight in the country, and the government plans to print more money. Both are generally considered key factors that lead to inflation. Federal Reserve Chairman Ben Bernanke said in a speech today, however, that he is confident the Fed can prevent inflation from happening.
Eighty-four percent (84%) of Americans say they are paying more for groceries now than they were a year ago, and 66% expect to pay even more 12 months from now.
The Federal Reserve has given no indication that it intends to raise interest rates to combat the possibility of inflation, but 34% of Americans think they will be paying higher interest rates a year from now. Twelve percent (12%) say interest rates will be lower, and 45% say there will be no change.
Forty-three percent (43%) also say there has been no change from a year ago in the interest rates they now pay. Twenty-nine percent (29%) say they pay more now, while 25% say they are paying less.
It is not a matter of IF but WHEN inflation hits. And, if the American economy is hit with a doubble wammy of low economic growth and inflation, then we have Jimmy Carter type stagflation.
Remember what happened the last time, too?
Republican candidate Ronald Reagan replaced one term President Carter.
-
Here We Go Again – Inflation Rears Its Ugly Head
Remember the late 1970’s, Jimmy Carter, Democrats in control of the Congress, Hyperinflation and Economic Malaise?Here we go again – It is just starting folks.
Inflation at the wholesale level surged unexpectedly in January, reflecting sharply higher prices for gasoline and other energy products.
The Labor Department said Thursday that wholesale prices increased by 0.8 percent last month, the biggest gain since last July and well above the 0.2 percent increase that economists had expected.
The acceleration was led by a 3.7 percent surge in energy prices with gasoline prices jumping by 15 percent, the biggest gain in 14 months.
Even outside the volatile food and energy sectors, wholesale prices showed a bigger-than-expected increase, rising by 0.4 percent. Economists had expected a slight 0.1 percent rise in so-called core inflation.
We Will need another Ronald Reagan to rein in government spending to right the Obama/Democrat economy.
Technorati Tags: Barack Obama, Jimmy Carter, Inflation