by Craig Masters
The President’s case that you’re better off…
Last week, the Fed reported a sharp contraction in the country’s industrial output. The report showed that production from factories, mines, and utilities fell by 1.2 percent last month. This is biggest drop since 2009. At the same time, the reduction in U.S. exports has pushed the monthly trade deficit in manufactured goods to a record $63.9 billion.
Factories are starting to cut workers. Consumers are struggling with debt ratios. There is no indication that taxpayers will risk any on-hand cash until the fear of the U.S. dollar falling over a fiscal cliff is reduced to a quiet rumble from the current roar.
The ‘QE 3’ program (to prevent falling over that cliff) Ben Bernanke announced earlier this month at the Jackson Hole Summit will need to attract borrowers and bond buyers to keep the fed from losing control of the dollar entirely. So far those customers have not stepped up here or in Europe.
This morning it was being reported from around the world that more than 24 U.S. embassies and consulates were virtually under attack by followers of Islam. Several jurisdictions in the New England states have recognized Sheria as a higher authority than the U.S. Constitution.
The value of the wealth of those Americans who still have wealth has declined by 39% since 2009. Gas has risen from a national average of about $1.80 per gallon when Obama took office to $4.00 per gallon today. That’s a 220% increase in the cost of getting to work.
In January, 2009, gold sold for only around $800 an ounce. Today it closed at $1770 an ounce. That means that the dollar has declined more than half against gold. If our creditors choose to collect instead of carrying our debt, the dollar will almost immediately drop in value to about 45 cents ($0.45) in today’s dollars.
But Rasmussen polls show that 50% of American adults are at least somewhat confident in the stability of the U.S. banking industry. And that number includes 11% who say they are Very Confident. Yet when asked about their confidence in the Fed to control inflation, 58% lack confidence that the Fed can slow inflation and keep interest rates low.
The President has campaigned in Colorado three times in past few weeks. He is telling us we are better off for his efforts to ‘fundemantally change America.’ He is repeating the famous message of Nancy Pelosi; elect him first – find out what he means to do later.