Posts Tagged ‘debt’
Oil Held Hostage? What About Us?
Just a quick posted article written today for your consideration. Here is a quote to whet your appetite considering that oil is over $80 per barrel today and the Federal debt ceiling is over $14,000,000,000,000 (that’s $14 trillion) as of now and “projected” to increase to over $18 trillion in four years (compared to $900,000,000,000=$900 billion twenty years ago):
Oil could fall as low as the $40 handle before we see a bottom and the prices to work higher once again. The big question is when. While we have been living off printed money for close to a year…the day is coming when the party will finally come to an end.
http://www.insidefutures.com/article/138222/Oil%20Held%20hostage%20Day%20353.html
Considering that the current administration has raised the debt ceiling from $12 trillion to over $14 trillion between December 2009 and February 2010 (two short months!), I suspect that “projected” increase to over $18 trillion by 2014 is most likely the only application of “conservatism” the Obama administration is currently practicing!
As the quote in the article stated at the end: “While we have been living off printed money for close to a year…the day is coming when the party will finally come to an end.”
A Slippery Slope?
The following article link explores the current increase in the price of oil in light of the fragile economic recovery:
http://www.heatingoil.com/blog/42571027/
The fact is, as the price of oil increases, it actually reflects the decreased value of the dollar and is more of the same when it comes to speculators driving the price up. They are betting that the economy, both domestic and foreign, is on the way to recovery and, as such, the price of oil reflects that in the form of a future price per barrel increase.
The real danger is it is simply another house of cards built by people who are looking for a quick buck in the arena of fast, easy money. And, just like the housing market bubble, the tech market bubble, the stock market bubble and last year’s $150 per barrel of oil bubble, this is likely to burst in the near future.
When it does, the good news will be the decreased cost of a gallon of gas at the pump. Bad news? It will signal a continued downward spiral of the purchasing power of the dollar. So, even though you will be paying less for that gas, it will still take more dollars to purchase that fuel. And that will also be reflective in the cost of all things energy related, from food to clothing to shelter.
My advice? Stop spending like there is no tomorrow, pay off all credit cards and cut them up, pay down all remaining debts and store some short term food. Not fear, just common sense.
Again?!
It seems now that Obama is president, he has a new take on increasing the debt load on our children and grandchildren. He has requested Congress to raise the debt ceiling before October in order to avoid the government going into default on its debt load. Here is the article link with some quotes first:
The Senate must move legislation to raise the federal debt limit beyond $12.1 trillion by mid-October, a move viewed as necessary despite protests about the record levels of red ink.
The move will highlight the nation’s record debt, which has been central to Republican attacks against Democratic congressional leaders and President Barack Obama. The year’s deficit is expected to hit a record $1.6 trillion.
When he was the junior senator from Illinois, he had a different take on the matter of debt:
Obama said in a 2006 floor speech that preceded a Senate vote to extend the debt limit. “America has a debt problem and a failure of leadership.”
Obama later joined his Democratic colleagues in voting en bloc against raising the debt increase.
No matter what, it is clear that the debt ceiling will need to be raised again next year!
Should the Senate follow the House’s lead and set the new debt limit at $13 trillion, lawmakers would probably have to raise the limit again next year, when the Obama administration expects to run a $1.5 trillion deficit.
http://thehill.com/homenews/senate/57493-senate-must-raise-debt-ceiling-above-12t
This goes along with Joe Biden’s quote very nicely:
“Now, people when I say that look at me and say, ‘What are you talking about, Joe? You’re telling me we have to go spend money to keep from going bankrupt?’” Biden said. “The answer is yes, that’s what I’m telling you.”
Reminds me of the couple who found an item they were looking for that was 50% off and, after the purchase, reasoned that they actually got it for free because, instead of paying $200 they only paid $100 and, since they saved $100…We are in soooo much trouble!