I've said this before and I will say it again. The real reason we face hard economic times globally and here in America is directly attributable to the high cost of fuel and NOT the mortgage collapse that our government and half ass economists would have us believe!
The justification for my statement and claim is based on the simple premise that the higher cost of fuel has directly impacted on every single business and individuals income.
The cost of every single thing we eat, drink, wear, drive, manufacture, produce, purchase or use has been dramatically affected by the instant spike in higher fuel cost which in turn immediately translated into loss of revenue, profits, income, wages and jobs. The real and even bigger problem is there is no way these increases can be continually passed along without further compounding the problem and deepening the loss of income in turn widening the depression.
Needless to say, this loss of revenue, profit, income and jobs with no ability to offset these losses eliminates the ability of companies with small profit margins or people on tight but previously maintainable budgets to keep their head above water let alone make high interest rate credit card or a ballooning mortgage payments. Add to this the poorly structured and underwritten mortgage products based on un-realistic appraised values created by greedy banks, supported by governments FannieMae and FreddieMac, and you have the absolute perfect conditions for a disaster/collapse in both the banking and housing markets. All primarily caused by reduce income from higher oil costs!
Now to compound the issue and add insult to injury, our government with its consultants, professors and half ass economists, in their infinite stupidity, attempting to stimulate our economy and create jobs, is once again saddling business and the American people with more expense, debt and taxes resulting in even less income. Governments answer for getting us out of the deep hole of debt they dug for us, is to dig a deeper hole by increasing taxes and spending more money we DO NOT HAVE. Brilliant! We have less money coming in so lets spend more and tax the people more. Let's start a massive unaffordable healthcare system, pass a huge cap and trade tax, stop drilling for US oil and while we're at it, add another $750 Billion dollar stimulus bill and tax. All this resulting in over $2 Trillion dollars to our National Debt (really the debt of the American people placed on us by the political Hacks) in less than 2 years.
The only possible result of higher fuel prices compounded by irresponsible out of control government spending and higher taxes is the recipe for a 'Perfect Storm' or America's Doomsday.
Our government has been promising us plan and long term solution to move us away from our dependency on foreign oil since the 70's yet not one party has done so or followed through. I blame our irresponsible government representatives for once again shirking their responsibilities by failing to put forth a balanced common sense long term solution to a problem that threatens not only our economy and jobs but our National Security .
*** PREVIOUS ***545 Individuals Solely Responsible for our Country’s Crises