Unemployment, Housing, and Commodities

In his State of the Union speech, the President spoke of creating jobs, and cutting the deficit. To minorities, members of the second class, and others, there are other painful components that will ensure that this economy flounders well into next year.  Whether one is Republican or Democrat is of little matter since the big three are themselves speeding toward a head-on collision with a rocketing stock market.

High Unemployment with Low Housing Starts

 There is no short term housing boom to assist the unemployment rate. For minorities these rates are higher – with the result that these families will feel the coming pain to a greater extent on a proportional basis. The glut of foreclosures will ensure that this situation remains static for some time. Tragically the bad news doesn’t end here.

Rising Commodity Prices - Oil, Cotton, Wheat

 

Although interest rates are low and inflation seemingly in a benign state, the simple fact is that the prices of commodities are slowly filtering through to the lower classes.  Oil especially affects everything along the supply chain. For all the future glorified expectations of clean energy it is clear that the calvery will not arrive in time. To add insult to injury soon sugar, the sweetener, may also play the role of the unaffordable villian.

Commodity Prices - Sugar & Salmon

 This is not rocket science. Hard times are here, and harder times are coming. The little advice i can give is to encourage people to save… but then everyone knows saving cuts the consumer spend, which doesn’t help the economy. Be scared… I know I am.

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