That Big Question: Why?

What do you mean, you can't afford gas, a home, and now food? The bottom line of the article: the author, blames oil prices.

"Several factors contribute to higher food prices, analysts say, but none more than record prices for oil, which last week closed above $105 a barrel. Oil is not only driving up production and transportation costs, but also adding to demand for corn and soybeans, used to make alternative fuels such as ethanol and biodiesel."

He goes on to say, "The weak US dollar, at or near historic lows against the euro and other currencies, adds more pressure. Oil and other commodities trade in dollars, so when the dollar is worth less, producers demand higher prices to make up for the loss in value."

And, "As with energy, higher food costs cut into discretionary income that buys everything from cars to computers to movie tickets and drives the consumer-based US economy. Falling home values and a faltering stock market have battered consumer confidence, spurring a retrenchment in spending that is contributing to recent job losses and pulling the economy toward recession."

Hmm... if Robert the case, and I suspect he is, here comes inflation as the cost of transporting everything goes up and gets passed on to the consumer. When will we stop electing wealthy oil men to the White House?

So let me make a final prediction: the worst affect from the horrendous policies of this administration, in cahoots with the republican party, is still ahead--just in time for whatever new administration to be blamed.

And the cycle of irresponsible, non-accountable, non-responsive government will continue. Oh, but don't worry, your personal check from the federal government will be issued sooner. That will fix everything. Thanks, George.

Quotation source: The Boston Globe