The Obama Administration is focussed on destroying what little hope is left in America. Stories abound today detailing what an absolute mess the U.S. economy is in, yet Liberals, RINOs, the state-run media, and Americans with their head in the sand continue to pretend as if everything is lemonade and lollipops.
I just posted about how gas prices have doubled since Obama took office. When oil prices shot up under George Bush, the Liberals went berserk and dragged the heads of the major oil companies in front of congress. They accused Bush and Cheney of a grand conspiracy. But a doubling of gas prices under Democrats is suddenly a good thing, or no thing.
Next we have a new report detailing the rise in food prices due to the inflation that the Fed says doesn’t exist. Wholesale food prices spiked 3.9 percent in February from January, the biggest jump in 36 years.
Chicago Sun-Times – Wholesale food prices spiked 3.9 percent in February from January, the biggest jump in 36 years, the Labor Department said Wednesday.
Most of the increase was because of a sharp rise in vegetable costs, but meat and dairy prices also jumped. Harsh winter freezes in Florida, Texas and other Southern states damaged crops, driving up vegetable prices. Meanwhile global prices for corn, wheat and soybeans have risen sharply in the past year. That has raised the price of animal feed, pushing up the cost of eggs, beef and milk at the wholesale and consumer level.
Corn prices are up 59.4 percent from last year. Wheat is up 81 percent, and soybeans are up 29 percent, said Ephraim Leibtag, deputy director for research at the U.S. Department of Agriculture’s Economic Research Service.
So, gas and food prices are rocketing ever upwards, but at the same time home sales continue to plummet. New-home sales fell 16.9% to a seasonally adjusted annual rate of 250,000. Compared to February 2010, sales collapsed by 28%.
(MarketWatch via Dailybail) — Sales of new single-family homes collapsed in February, the Commerce Department reported Wednesday, as a combination of high unemployment, tumbling prices and a glut of cheaper alternatives brought activity to a near-standstill.
New-home sales fell 16.9% to a seasonally adjusted annual rate of 250,000 in February, though January’s figures were revised higher to 301,000 from 284,000. Compared to February 2010, sales collapsed by 28%.
Every region but the West saw record lows, and in the Northeast, sales dropped by 50% compared to year-earlier levels.
“The housing market has literally collapsed,” said Tony Sanders, a real estate finance professor at George Mason University. “We’re stuck, it’s not going to revive in the spring and may not in the summer.”
Economists polled by MarketWatch had expected a slight rise to a 290,000 rate in February. While inclement weather may have played a role in the particularly poor showing during the month — the particularly nasty dive in the Northeast and Midwest lends support to such a view — analysts said the figures were reflective of a basically dead market.
“The details of the new-home sales release clearly indicate that the housing market remains incredibly soft,” said David Resler, chief economist of Nomura Securities International.
“There’s massive excess [supply] on the market, interest rates are not at record lows, tighter credit standards, unemployment is not decreasing fast enough and throw in oil and gas prices, that sends a big stop sign on consumers buying homes,” Sanders said.
The USDA forecast says consumer food prices will rise 3 to 4 percent this year.
Next up, PIMCO boss Bill Gross, who runs the world’s largest fund, recently dumped all his Treasuries and just came out with this dire warning: America will default, thanks to trillions in entitlement obligations. He says, “We are out-Greeking the Greeks.”
…the only way out of the dilemma, absent very large entitlement cuts, is to default in one (or a combination) of four ways: 1) outright via contractual abrogation – surely unthinkable, 2) surreptitiously via accelerating and unexpectedly higher inflation – likely but not significant in its impact, 3) deceptively via a declining dollar – currently taking place right in front of our noses, and 4) stealthily via policy rates and Treasury yields far below historical levels – paying savers less on their money and hoping they won’t complain.
Meanwhile, America is spending more on the war in Libya than Democrats are willing to cut from the budget they continue to refuse to produce. What cuts may eventually be made will go to arming al-Qaeda in Libya. Isn’t Liberalism fun!
Welcome to the new normal!