Economy not slowed by energy costs-Bernanke

[sabra]

http://today.reuters.com/news/newsArticle.aspx?type=domesticNews&storyID=2005-08-09T194912Z_01_WBT003675_RTRIDST_0_USREPORT-ECONOMY-BUSH-ENERGY-DC.XML

Economy not slowed by energy costs-Bernanke
Tue Aug 9, 2005 3:48 PM ET



CRAWFORD, Texas (Reuters) - A top economic adviser to President Bush said on Tuesday that high energy prices are a burden for Americans but so far have not slowed down the U.S. economy.

....

"Those high oil prices are a burden on U.S. families, on firms' production costs. But the good news is that at least so far the U.S. economy has not been slowed by the high energy prices. It's been a resilient economy, it's responded well and job creation has proceeded apace," Bernanke told reporters after taking part in an economic briefing for Bush at his ranch.

[marmar]

1. Gas is $2.55 a gallon today in southeast Michigan...

If this keeps up, the economy is not only going to slow down, it's going to slip into reverse. People are slipping those credit cards into the pay-at-the-pump slot at a pretty alarming rate!

[applegrove]

2. Because of under-employment in the U.S. economy. What are the

rich doing to "sacrifice"? Anything?

[jurassicpork]

5. They go out on sunday drives

in their Lincolns and Mercedes' only when absolutely necessary.

JP
http://jurassicpork.blogspot.com

[The_Casual_Observer]

3. By holding down interest rates they have delayed the inevitable

However, that can't continue forever. It is going to get ugly.

[kymar57]

4. gas prices

This has bothered me. I don't understand how fuel price increases have not had a more adverse effect on the economy

I drive a delivery truck for an office supply co and fill up twice a week. I don't really see the price fluctuations in the price of diesel fuel that we've seen with gasoline prices.(why is that anyway?? For another thread)

But I suppose, my point is, if the oil companies(bastids) are siphoning an additional $20-$30 a month from my monthly budget,that is money I could and probably would have spent elsewhere.

Now I'm not smart enough to say for sure, but I think I may be representative of a significant percentage of Americans. Decent not great job, a few shekels in the bank,contribute regularly to retirement fund, and try to pay my bills on time. But there just isn't a lot of wiggle room in the budget. So as gas prices continue to rise, more "frills" must fall by the wayside.

[durablend]

11. But you're not getting message

The rich have NO problem with the price increase and that's ALL that matters. The poor/middle class gripes are either ignored or told to STFU ("maybe if you were more ejimicated you could get a better job and pay the higher prices")

The cognitive disconnect between the "haves" and "have nots" is widening...we'd just better hope the "have nots" decide to wake up and take action next year (and not be watching "American Idol" instead)

[sintax]

6. Bullshit-The End of Conspicuous Consumption in McAmeriWalMartika

Of course when they say ECONOMY they mean FLOW OF MONEY TO THE WALL STREET WEALTHY not HOUSEHOLD STEWARDSHIP.

Oil costs drive up price of raw materials

Mark Tran
Monday August 8, 2005

Higher oil prices helped push the cost of raw materials up at the fastest pace for at least 20 years during July, official figures showed today.

The Office for National Statistics (ONS) said producer input prices rose by a seasonally adjusted 1.8% last month, taking the annual rate to 13.4%. The annual rise, driven by surging oil prices, was more than the 12.2% consensus forecast.

Meanwhile, prices at the factory gate also rose more than had been expected as manufacturers began to pass on increased costs on to customers.

http://www.guardian.co.uk/business/story/0,3604,1544994...

Good News! Soon You'll No Longer Need an Expensive College Education to Work in the US

Watching the Economy Crumble

By PAUL CRAIG ROBERTS

The US continues its descent into the Third World, but you would never know it from news reports of the Bureau of Labor Statistics’ July payroll jobs release.

The media gives a bare bones jobs report that is misleading. The public heard that 207,000 jobs were created in July. If not a reassuring figure, at least it is not a disturbing one. On the surface things look to be pretty much OK. It is when you look into the composition of these jobs that the concern arises.

Of the new jobs, 26,000 (about 13%) are tax-supported government jobs. That leaves 181,000 private sector jobs. Of these private sector jobs, 177,000, or 98%, are in the domestic service sector.

Here is the breakdown of the major categories:
• 30,000 food servers and bar tenders;
• 28,000 health care and social assistance:
• 12,000 real estate;
• 6,000 credit intermediation;
• 8,000 transit and ground passenger transportation;
• 50,000 retail trade; and
• 8,000 wholesale trade.

http://www.counterpunch.org/roberts08092005.html

[Psephos]

7. If it really is the end, then what's the gripe?

I'm only half-kidding.

Peace.

[sintax]

9. Freedom

means nothing left to buy.

:toast:

[Psephos]

10. Exactly! :-)

[VegasWolf]

8. Simple, because the economy is too sluggish to even move. nt

[wishlist]

12. Americans are charging huge amounts of debt to credit cards/home equity

I read recently that personal debt through credit cards and home equity loans is skyrocketing. Both the Bush federal deficit spending plus consumer debt is fueling this economy.

[WannaJumpMyScooter]

13. But, but... it is patriotic to pay more for petroleum products!

More blood, more oil!

Get it now?

[mbperrin]

14. Stupid bastard needs to open his eyes and look around at the

actual world:

out here in no-public-transportation-land, even the poorest people had some sort of transportation until about a year ago, when I now see whole families walking in the 100 degree West Texas sun carrying their purchases from the Dollar Store.

4 apartment complexes within half a mile of here (one of 200+ units) have simply been shuttered and fenced.

A major retail shopping center in the area is 50% full (was 85%) LAST summer!

There's more, and this is all local, but people at the bottom are walking, moving in with family/friends, and buying the lowest stuff at the cheapest outlets.

And I'm supposed to accept this as OK?

I'd say more, but my mom never did like for us to cuss this early in the morning. Course she's dead, so FUCK YOU Bernanke!