Wednesday, May 28, 2008

An Update on yesterdays story The rapidly failing economy will change Demographics! It's moving Quickly and daily!

Yesterday I posed the question At what point can Americans no longer afford to work where and at where they want but must settle for less to survive? I was just in the process of preparing an update to the situation based on what I read this morning but while I am putting this together I just heard an analyst scratching the surface of reality for the first time saying he sees $7 gas. I will guarantee you $10 and he feels it will begin to dictate where you live in the future. I will guarantee it in many instances. Bingo but it is already here!

Yesterday I said I have been thinking about much of this for years but at one time here in America it was thought of as Communistic or something! However the time has come. First I have to tell you, what is happening to our oil prices does not have me a happy camper. I would not be averse to the daily skyrocketing prices if I did not know speculators, the mega rich were driving up the prices, only to become obscenely wealthy at the expense of average Americans. I am insulted watching as the Average Americans life gets increasingly tenuous because of regulations put in by Bush to further enrich the affluent while squeezing you ever tighter and those that should don't friggen get it and Bush just denies it and carries on! .

The middle class has to be dropped a little lower and the purposely established new societal order Bush has been actively implementing at least since 2004 with a working class to service the affluent is almost finished. you see natural causes being allowed to do just that highlighted by Katrina and New Orleans. Anyway I am concerned this will all come to a head around election time and it will lead to total world chaos! I have written so many books, Pamphlets, Stories, Letters to Politicians, Media outlets, over the years I think I am ready to give up but it is happening!.With that said world wide chaos aside, this is all coming to a head societally and of late I have found myself wondering at what point can average Americans no longer afford to work? Or to have to relocate because of the price of oil and gas! I hate to say it but I see some positive things coming out of all this. I keep seeing stories of people hawking everything they own so they can keep ahead of the debt collectors. There are daily stories of people Hawking their gold teeth and Pawn shops doing an increasingly lucrative business. Our society was going the route of the Roman Empire which is normal in the cycle of life of a society. Bush has merely sped up that process along with everything else. work place killings, murder suicides, and mass shootings and killings are increasing as societal conditions get increasingly tenuous.

I can remember after 9/11 when the idiots in charge stupidly said no one is going to change our way of life! in the same token I remember when oil first started skyrocketing and gas at the pump started climbing. People stupidly said they'll never curb my driving. Well! in both instances even a fool can tell you, you are only saying "Thank You Sir give me another" You are just asking for things to get worse. as a little child I learned shut up or put up period and most people are to naive to realize that. as I said about any fool! At a time when gas prices are at an all-time high, Americans have curtailed their driving at a historic rate. The Department of Transportation said figures from March show the steepest decrease in driving ever recorded.Yesterday I highlighted that people are learning to compromise and some of you responded with your own adjustments. Today it is being felt deeper and moving rapidly! Consumers are feeling worse about their personal finances and prospects - far worse than government statistics about the economy would indicate. Only a few years ago, Americans who considered themselves middle class were scrimping to pay for their kids' college education. Now, many of them are struggling to cover far more basic needs - gas and groceries.

Take Stacy and Chuck Burris. The Pittsburgh, Pa., couple view themselves as solidly middle class. In recent months, however, they've felt anything but. Burdened by high cost of food and fuel, they are having trouble balancing their budget even though Chuck Burris earns a "comfortable salary" as a software engineer. The parents of five children, three of whom are grown, have essentially stopped eating out and entertaining and are considering canceling the annual family vacation to Maine. They keep to a Spartan shopping list and have planted a larger garden. Instead of buying their 12-year-old daughter summer clothes, they are turning her pants into shorts by cutting off the legs and getting hand-me-downs from family.

Never before in previous recessions have they had to cut back like this. "We are struggling to stay in the same place," said Stacy Burris, 47. "You don't mind pinching pennies to send your kids to college. You do mind pinching pennies when it's simply to buy some eggs." Many others nationwide are feeling similarly strapped. Recent consumer sentiment studies and polls show that Americans feel worse about their financial situations and the economy than they have in decades, even as economists debate just where things stands. And people don't expect things to improve anytime soon. "Consumers are very financially stressed, more than what's indicated by the job and income statistics," said Scott Hoyt, senior director of consumer economics at Moody's High fuel and food costs, coupled with miniscule raises and shrinking home values, led more people to report that their personal finances have worsened than at any time since 1982, according to a recent consumer survey by Reuters and the University of Michigan.

The future looks grim to them, too. Just one in five households surveyed expect their finances to improve during the next year, the least favorable in half a century. Three-quarters of those surveyed said they expected the nation's economic troubles to continue over the next year, the highest level since 1980. They predict the unemployment rate will jump by one percentage point to 6.0% by year end. "Consumers are the ones in trouble here," said Paul Ashworth, senior U.S. economist with consulting firm Capital Economics. Consumers are being pummeled by plummeting home values, a weak stock market and soaring grocery and gas costs. Weighing even more heavily on consumers is uncertainty about where the economy is headed, said Ken Goldstein, economist with The Conference Board. It's unusual to have such slow growth for so many months and Americans don't know how to respond. "What's really pushing consumers into a funk is the fear of what's coming next,

" Goldstein said. "You can't be sure you know exactly where we are or where we're going. Consumers are afraid that the light at the end of the tunnel is an oncoming train." That's exactly how Chris Ackerman feels. He said that he and his wife, who live just outside Seattle, find that their paychecks no longer cover their rent, student loans and daily living expenses. That is forcing the young couple to turn to their credit cards to make ends meet. They've already cut out much of their entertainment and trips to visit her family and friends 30 miles away. If gas and grocery prices continue to rise, Ackerman, who works for an importer, said he'll have to stop contributing to his 401(k) plan. He doesn't see many other options. "The worst part is looking to the future," said Ackerman, 25. "What if everything keeps getting worse. That's the scariest part. Is my grocery bill going to double again? What will we do?" Making a good living, but still feeling strapped

* Today I reiterate The compromises are just beginning and I hate to say it when this is done we will be better, stronger, and more serviceable and functional as a society but we have some changes to make. Gas prices have been increasing for 20 straight days. Here in New England it is the price of heating oil next year and beyond that has me concerned! As I keep hearing of hot gas compensation, a gas tax holiday, using our oil reserves, curbing oil co. tax incentives, I hate to say it people but you are screwed. They have your number, they know Bush is complicit, and Congress is worthless. This is just beginning and I see $10 gas at the pump in the not too distant future. What would that do to your lifestyle? Let me give you an idea!

** People have begun to evaluate their daily habits.Do I have to go out to eat? Do I need those trinkets? new clothes? Can I find a cheaper place to shop? A closer place? Do we need that vacation? Can we stay local? Aah Local now there is the key. There is our future. Go back to your roots. It is normal but most Americans are not use to compromise. Get use to it. I was wondering how much higher does the price of gas have to be before many people can no longer afford to work and would be forced to make a compromise that in the end may be better for them, society, and our communities? Think of your situation or maybe you don't want to but last weeks AAA study showed it cost an estimated $850 per month to own a car. You can handle that at at $10 an hour if you lived with your parents, had a room mate, or cheap rent. $20 an hour would do it and give you a comfortable place to live and you could own a house and continue to drive to work if there was 2 making that money and you were lucky enough not to get caught by those teaser rate mortgage loans. What it all boils down to is many people are screwed and if they are to make it we have to go back to the way society was in 1942 and we will be all the better for it though you may not like it!!

*** I see the necessity for people to maybe take a lesser paying job to stay local. I see a return to down towns. A resurgence of local life. a return of local stores, local theaters, and local points of concern and interest. I see a return of public interest in their cities,more concern over what is happening their, more community involvement. I do not like what is happening but I see it bring many families and communities back together as only hard times can and sadly you see it every day. It will soon be not because of natural disasters but our own man made disasters. We will persevere! How do you feel today?

James Joiner
Gardner Ma


PoliShifter said...

This coming on the news that foreclosure rates are the highest for military families living near military bases.

Supporting the Troops Bush-Style...

an average patriot said...

Really I didn't catch that. The abuse of our military really sickens me. I just got through listening to the ass hole McCain bragging again to the military how that is his life's calling, he knows what they need, and he will always be there for them. Yeah like Bush! i can't believe those scum had a closed door to collect millions from the scum Bush has enriched so McCain can continuing it and this perverted agenda!
By the way the other day you gave me what I think you called a permalink.I lost it but gave your story with credit of course to Utah Savage. Is tha something anyone could get from any site? Take care I'll be by!

Weaseldog said...

Some McCain familiars on FOX are saying that McCain voted against the Webb GI bill because our soldiers need to put in more time before they earn benefits.

They went on to argue that volunteers shouldn't get benefits at all, because there is no draft.

There's video over on Crooks And Liars.

PoliShifter said...

Hi weasel dog, yup, that is the line they are using. The McCainiacs fear a fully funded GI Bill would encourge people to join the military for just 3 years only for the benefits, not to be a 'real' hero like McCain and serve the better part of their life in the miliary. Only the real heroes in their eyes deserve benefits. The rest are just scum sucking cannon fodder. If you are not an officer you are scum to McCain.

Jim, here is a link:

Bloomberg - Foreclosures in Military Towns Surge at Four Times U.S. Rate

PoliShifter said...

Not to mention...McCain's dad and granddad were admirals...

an average patriot said...

wease I got that argument. It is bull! If they are so honored to serve and the cause is so righteous those who want to go to college can and then become officers as used to be the case. Did I show you McCain's voting record Stella sent me.Every single vote abstained or against the veterans. He cares about them my ass. Today he was again saying how much he loves the military and knows what is best for them not someone who hasn't served. You don't have to be a woman to know how to treat one. Sickeningly many will ignore his record and believe that crap!

an average patriot said...

That is sick! That just shouldn't happen and many have N obligation to see that it doesn't undoubtedly everyone is waiting for everyone else to do it.
It should not be up to vets and their families. It should be up top the VA, local VFW's, State institutions, Communities banks, this is just not right!

an average patriot said...

You know you are right about McCain and it is all the more sickening as Bush uses their Admiralty to get what he wants instead of to do what is right. It really is sickening. The guy is delusional. Remember Stockdale? Instead of realizing the harm prolonged time as a POW would have on ones Psyche they exploit it for Political gain. AAARRRGGGHHH!

Larry said...

Another fallout Jim:

Fuel suppliers demand airlines pay cash in advance

By Carl Mortished and Amanda Andrews

Airlines are being forced to pay cash in advance for jet fuel as the major oil companies tighten the screws on an industry that is being crushed by an extraordinary surge in the price of crude oil.

Sources within the airline industry indicate that credit is being denied to most of the leading American carriers and the practice is moving to Europe and Asia. So uncertain is the cash solvency of the industry that jet fuel suppliers insist on prepayments into special bank accounts.

A credit controller at a leading European multinational oil company told The Times that the oil industry was moving to jet fuel prepayment. “It’s common in the US and it is moving to Europe. We have been moving to prepayment since Swissair went bust.”

The need to put up money before delivery of fuel is a huge financial burden that has been shifted from the oil companies to the airlines. According to John Armbrust, a US jet fuel consultant, the oil industry had $5 billion (£2.5 billion) of jet fuel credit outstanding to airlines before the 9/11 terrorist attacks. Now they are demanding that airlines leave cash on deposit.

“The airlines can’t afford it. Traditionally, oil companies extended credit for 14 or 21 days and some as long as 30 days. Now, most American airlines are on prepay. South West is one of a few likely to still get credit.”

The extent of the cash squeeze was highlighted last week when American Airlines said that it would charge $15 per bag checked even as it revealed plans to shed 75 aircraft, shrinking the airline’s capacity by 12 per cent.

The price of jet fuel has risen by 60 per cent since January and American Airlines paid $665 million more for fuel in the first quarter of this year than in the same period of 2007.

The credit crunch is likely to worsen and a number of financial institutions will fail, according to research from Atradius, the credit insurance group which conducted a global survey of its customers’ views of the financial outlook. Although Atradius said that companies expect the number of failures to be small, about 65 per cent expect there to be failures.

The group added that direct exposure to sub-prime lending is higher in Europe than in the United States even though the bulk of the sub-prime mortgage defaults are in the US and many of the securities these loans are packaged into would have originated from US-based mortgage companies.

“Some explanation for this may be investments by European companies in US securities offering higher returns and more frequent use of secondary financial markets to securitise receivables by European countries,” it said.

Atradius added that only 12 per cent of companies across the world do not expect an economic slowdown in the next year. In Britain, more than 90 per cent of companies surveyed expect a slowdown, the highest percentage. About one in six companies expects a slowdown of only the national economy; a quarter expect a slowdown of the global economy and half expect a slowdown of both. The expectation of a slowdown is also high in Mexico, the United States, Spain, Italy, France and Belgium and lowest in Sweden and the Netherlands.

Atradius found that larger companies are more likely to have been affected by the credit crisis. Although fewer than 30 per cent of small companies reported an impact, almost half of all large companies (with more than €1 billion annual gross sales) said that they had felt the credit-crisis pinch.

an average patriot said...

Knowing Bush's oil connections Sending me this just turned on a light bringing everything that is happening full circle. Leaving Bush once again to appear the hapless victim as he appears forced to action and have to take total control. I am probably going to write about it soon so I will stop there.

Weaseldog said...

Thanks Larry.

If they are on prepay, then there must be a string of bankruptcies about to occur.

I guess they are doing everything they can to keep ticket prices from rising too fast.

If their ticket prices rose with the price of fuel, they would probably have to dramatically scale down the number of flights.

Long distance travel is almost over for the common man.

an average patriot said...

I don't think Larry gets responses though I would love to carry numerous discussions on with him. Anyway I want to respond to you because I wasn't thinking about bankruptcies though that would bring another bailout for us.
What I was thinking about and I want to write about it soon I think is that Knowing Bush's oil connections Sending me this just turned on a light bringing everything that is happening full circle. Leaving Bush once again to appear the hapless victim as he appears forced to action and have to take total control.
Wait a minute silly me you might have just seen that. I always respond to Larry of course but he is hit and run because he seems to be everywhere. He is something!

DivaJood said...

Oddly, this week we've gotten extremely busy at work with last minute travelers. In the month of May, my commissions have been higher than my base salary. That said, I have almost nothing on the books for 2009, everything I have is for 2008.

Once gas prices hit $5, I will not be able to afford to drive to work, though. And I am about to ask for permission to work from home rather than drive to the office.

an average patriot said...

Wow! I will try to stay away from my usual dire but right on thoughts but this week might be the climax for you as people are beginning to hunker down. I heard that a lot of people are about done trying to fly and I believe you saw what Larry sent ?
I just told one of my sons that I will only fly to Florida to drive back here with him if he makes me. My sons are my best friends so we can say anything to each other and laugh!
I am happy things have been good for you up to now and I may be wrong but I think you have seen your best days in the flying industry. You are smart Diva to work at home if you can especially if you have a long commute. Speaking of commutes I have noticed traffic down big time.
I am going to put a story together based on what I have been saying and what Larry just said about airlines, prepaying for fuel, and bankruptcies. Knowing Bush's oil connections I now believe he is letting them do his dirty work as he looks for a reason to take total control.
Glad to hear from you by the way!

Weaseldog said...

Diva, as long as the airlines can avoid raising ticket prices dramatically, they'll keep customers.

As fuel costs continue to rise, I don't see how they can do that.

When they find themselves forced to double or triple ticket prices, we'll see a reduction in their customer base and number of flights.