Forget Unemployment Obama is Giving us Stagflation

During the Jimmy Carter Administration, America endured high oil prices and long gas lines. In addition, consumer spending was stagnant and we saw higher price of goods. By definition, stagflation means an economic condition in which inflation and economic stagnation are occurring simultaneously and have remained unchecked for a significant period of time. Today, America is experiencing a Jimmy Carter's stagflation recreated by Obama.

(NewsMax) Obama's failure to support America's allies in the Middle East and his dithering endorsement of chaos in the region will send oil and gasoline prices skyrocketing, triggering a massive bout of stagflation.

Consider what he has done to push up oil and gas prices:

Endorsed spreading chaos in the Middle East.

First banned and now slowed down offshore oil drilling.

Considered curbs on fracking (horizontal drilling to unlock shale deposits in theNortheast- a potent new source of oil).

Imposed a carbon tax on domestically produced coal and oil through EPA mandate.

Proposed an end to tax advantages designed to encourage oil drilling and exploration.


Now Obama is reaping the fruits of these misguided policies — $4-per-gallon gas, soon to go up to $5 or $6!

And the fuel-price increases will take their place alongside food-price rises. Food prices for corn, soybeans, wheat, and other basic crops have almost doubled in the past year.

The combination of reduced confidence in the dollar (at home and abroad) and the rises in fuel and food prices will force up prices as costs push them higher. Already, the International Monetary Fund (IMF) has pressed for the replacement of the dollar as an international currency by "drawing rights" printed by the IMF.

With inflation, consumer demand will drop. Then, unable to recoup their costs, vendors will be forced to raise prices even higher. An inflationary psychology will take hold of the economy. Higher interest rates will be needed to break its hold, forcing us into yet another recession, this one fully courtesy of President Obama.