Thursday, August 25, 2011

CBO: ECONOMIC PROBLEMS WILL CONTINUE THROUGH 2014


The non-partisan Congressional Budget Office has announced that our national economic problems will continue at least through 2014, given current trends. This includes a predication that unemployment will continue at levels above 8.0% through at least that period. 

COMMENTS:
The key language here is “given current trends.”  That means that as long as Obama and friends are in charge, we’re screwed. 

TODAY’S QUERIES AND ANSWERS:
Q. I heard yesterday that new EPA rules will force the closure of several major coal-fired electrical generating facilities, thereby causing power shortages and blackouts.  That’s criminal.  What’s EPA’s stance on the power shortages? (Norm ~ Reno, NV)
A. “We don’t manufacture electricity.  You can talk to the Department of Energy about that, but our rules will be met.”   

Q. How bad is the housing situation?  (Marguerite ~ Beverly Hills, CA)
A. Overall, it’s in the worst situation it has been in since the Great Depression.  The trend over the last 4-5 months is down, down, down.  That means it is likely to get worse.  I believe we are entering a depression if we are not already there.   

Q. Who on the potential Republican Presidential list do you think can resolve our economic woes?  (Lew ~ Palo Cedro, CA)
A. Any one of them, Cain being the best qualified. 

TODAY’S QUOTE:
“The sources of deflation are not a mystery. Deflation is in almost all cases a side effect of a collapse of aggregate demand.. a drop in spending so severe that producers must cut prices on an ongoing basis in order to find buyers.” ~ Ben Bernanke


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