The Dow dropped 59 points on Thursday bouncing off session lows of 225 points reacting to 11 weeks in a row new unemployment claims above 400,000. Data from the U.S. Census Department came in today as well, revealing new homes sales fell to 2.1%, citing single family housing fell for the 1st time in several months confirming for economists we are officially in a double dip in the housing market.
These new disparaging numbers come only one day after the nonpartisan CBO released a report finding the U.S. debt crisis is worse than economists had first projected, as well as The FED revising down its economic forecast from originally predicting the economy would grow at an estimated 3.1% to 3.3% to now saying the new numbers look like 2.7% and 2.9% by the end of 2011. Fed Chair Ben Bernanke said in his press conference the FED has basically done all it can do to jump start the economy, with prime and near zero and claiming another quantitative easement could do more harm than good.
The US consumes 6.85 billion barrels of oil per year, so the United States doesn’t even have a 1 year supply of oil in our “disaster relief” reserves, in actuality just over a 90 day supply, and President Obama is tapping into it without a natural disaster but perhaps to deflect from his political disaster?
Quantitative Easement is another “fluffy term” made popular during this Administration which is economic geek speak for the central bank (the FED) printing money, C-notes or Benjamins, to flood the U.S. market place in an attempt to jump start our impotent economy. The FED has performed this measure twice, QE1 and QE2, but now fear to be seriously devaluing the U.S. dollar as its worth is at an all time low. Also, with quantitative easement, inflation is always a byproduct. See Japan’s Lost Decade for more on the ramifications of devaluing your currency and other exotic economic benchmarks like billion dollar stimulus packages that follow the Keynesian model from the land of academia that ruins a country’s financial health for a decade! Sounds familiar huh?
If all this doesn’t have your eyes bleeding yet, hold onto your seat for President Obama’s response to what seems to be daily dismal economic news.
The Obama administration announced on Thursday its plans to tap into the strategic oil reserve, upon hearing the cheerful economic news all shared in two days. The strategic oil reserve is specifically for natural or military disasters, like a major earthquake or horrible terrorist attack, and not for the President to use when he is having a political crisis with the 2012 election edging ever closer and all The President’s Men have nothing but bad news for him on his economic policies.
The Obama administration has now run out of tools in their toolbox to prime the economy, according to his Keynesian Playbook, so Obama is trying to lower the price of gas at the pumps before the July 4th Holiday to give the illusion to the uninformed citizen that at least gas is cheap, as high gas prices have always been the biggest irritant to Americans and their perception of the health of the economy. Americans may, however, have to take out another home equity line of credit for their family backyard bar-b-que. Have you noticed the price of food lately? Isn’t recovery great!
The U.S. has 726.5 million barrels in our strategic reserve, and Obama is going to take out 30 million barrels, or just under two days worth of U.S. consumption. The US consumes 6.85 billion barrels of oil per year (2009 numbers, no new numbers available under Obama administration), so the United States doesn’t even have a 1 year supply of oil in our “disaster relief” reserves, in actuality just over a 90 day supply, and President Obama is tapping into it without a disaster? That is like a normal American family, already overextended on credit cards and struggling to make ends meet, depleting their “emergency fund” to buy a new HVAC unit when the heating and air unit they have is in good working order, hence using their emergency fund on a non-emergency!
The last time the strategic oil reserve was tapped was in 2008 under George W. Bush during the Katrina disaster.
This President makes it almost impossible to find favor in any of his actions or policies! I am not a conspiracy theorist, so I don’t buy into the notion some share that Obama is purposely bankrupting America so he and his socialist friends can rebuild it with George Sorros as a true Communist State (I’m talking to you Glenn Beck), but besides getting Bin Laden, everything Barrack Obama does is bonehead and causing harm to America!