A Skeptical Survivalist

NEW YORK (CNNMoney) — The national average price for a gallon of gasoline rose for the ninth straight day on Sunday to $3.838. That is now only about 6.7% below the record high of $4.11 from July 2008.

The average price rose by three-tenths of a penny, according to the survey of gas stations conducted for the motorist group AAA. Gas prices are now up more than 17% this year.

The nationwide average was $3.52 a gallon a month ago and $3.76 a gallon on March 9 — the day that prices started rising again after a few days of slight declines.

Gasoline averages more than $4 a gallon in seven states: Alaska, California, Connecticut, Hawaii, Illinois, New York and Washington. Gas prices are also above $4 a gallon in the District of Columbia, according to AAA. At nearly $4.48 a gallon, Hawaii ranks as the nation’s high. Prices are less than a dime away from $4 a gallon in Michigan, Nevada, Oregon and Wisconsin.

It’s time for the left to get off its duff and turn the tables on the radical right. And our history reveals that there’s an excellent method for accomplishing precisely that: a great march of the unemployed on Washington.

Recent polls reveal that Americans are decisively more concerned about the crisis of unemployment than the issue of our national debt. But as many commentators have observed in recent weeks, the results of the midterm elections, with Republicans gaining control of the House, and the associated rise of the tea party have pushed an agenda of austerity in government spending ahead of using government resources to fight unemployment.

Once there, these unemployed people would deliver a simple demand: The government must act immediately to give them back employment. They could invoke quite a number of interesting historical precedents: the platform of the pre-Civil War Whig Party, whose leaders, including Henry Clay and young Abraham Lincoln, urged governmental “internal improvements” — public works such as canal- and road-building projects — to give work to the jobless during a ruinous depression that followed a financial panic in 1837.

They would naturally invoke the great precedent of the New Deal’s Works Progress Administration, an agency that under the leadership of Harry Hopkins created jobs for the jobless almost overnight, thus providing some desperate and innocent people with a way to save their families and homes.

To be sure, the left has tried to address economics: It has protested repeatedly on the issues of out-sourcing, deregulation of the financial sector, and so on. But in the midst of the worst economic contraction since the 1930s, it has somehow allowed the extremists of the right to run roughshod over them.

That needs to change. Even many sincere and committed centrists admit that there are times when a disproportionate influence in one direction will require some vigorous counter-pressure if a wholesome balance is to reign.

A march of the unemployed might be the way to do it. And there’s historical precedent for this idea, too — not only in the still-remembered marches on the nation’s capital that occurred in the 1960s, but also in the largely forgotten marches of the unemployed that occurred both in 1894 and (more consequentially) 1932.

The preparations would have to start soon if such an exercise in grass-roots activism is to stand a real chance of affecting our political balance of power next year. Is the left prepared to rise to the occasion?

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Inflation accelerated to its fastest annual pace in two and a half years in April, as surging gas prices continued to hit American consumers.

The Consumer Price Index, the government’s key inflation measure, rose 3.2% over the last 12 months ended April 30, according to Friday’s report from the Labor Department. It was the biggest 12-month jump since October 2008.

The outlook is cheery.  lol

If the recent rise in oil prices sticks, it will most likely slow a growth rate that is already too sluggish to produce many jobs in this country. Some economists are predicting that oil prices, just above $97 a barrel on Thursday, could be sustained well above $100 a barrel, a benchmark.

Even if energy costs don’t rise higher, lingering uncertainty over the stability of the Middle East could drag down growth, not just in the United States but around the world.

But other sources of economic uncertainty besides oil prices have come into sharper focus in recent days. After a few false starts, housing prices have slid further. New-home sales dropped sharply in January, as did sales of big-ticket items like appliances, the government reported Thursday.

Though the initial panic from last year has faded, Europe’s deep debt problems remain, creating another wild card for the global economy. Protests turned violent in Greece this week in response to new austerity measures.

Budget and debt problems at all levels of American government also threaten to crimp the domestic recovery. Struggling state and local governments may dismiss more workers this year as many face their deepest shortfalls since the economic downturn began, and a Congressional stalemate over the country’s budget could even lead to a federal government shutdown.

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For consumers specifically, the ramifications are serious as the debt service burden has risen to 24 per cent of disposable income and is set to rise further as rates push higher. We expect the burden to rise to an exorbitant 30 per cent by 2012. To put this into context, the US consumer “blew up” when the debt service burden hit 14 per cent (with a current read of approximately 12 per cent). In other words, the Brazilian consumer has twice the debt load from a cash flow perspective relative to a US consumer who is still widely regarded as being over leveraged.

The situation in Brazil is worryingly similar to the sub-prime crisis in the US. A lot of credit is being pushed by the banks at high rates to consumers who ultimately won’t be able to service the debt.