USA: Cost of oil dampens spring break

With spring break on our minds, it is hard to concentrate on anything but the slopes, the beach or even home. For many, this spring break will take a much heavier toll on their wallets than in past years.

For University College freshman Claudia Cubillos, even the cost of driving home to Oklahoma City has put a damper on her vacation plans. “Even though I’m from Oklahoma, the price of gas has definitely cut into my spending budget. I probably won’t get to do as much during the break,” Cubillos said.

It’s sad to think the cost of a good road trip has gone up significantly because of the price of gas.

For more: OUDaily.com | COLUMN: Cost of oil dampens spring break

US Economy: "It’s time to stop deceiving ourselves about the budget" - by Dr. Erik Steele

A recent Pew Research Center survey of Americans’ attitudes about reducing the federal budget found a significant majority of us want to increase spending on Medicare and education. About half of us want increased spending for defense and the unemployed. The majority of us also want no increase in our taxes. When you add up all of what we want it’s also clear what we don’t want — reality.
 
As a result, we and our leaders have suckered ourselves into a vicious cycle of denial about what it really takes to cut deficits, a cycle that is swirling us ever faster around the national drain. We punish politicians for telling us the ugly truth, so they fail to tell us the ugly truth. Then we don’t hear the ugly truth from enough of our political leaders to start accepting it and support efforts to address it.

That cycle must be broken and there are some in politics and elsewhere who are trying. Last November President Obama’s bipartisan Fiscal Commission released its co-chairs’ recommendations for eliminating the federal budget deficit over the next 10 years. It tackled defense spending, Medicare, Social Security, subsidies we all get from the government in the forms of mortgage and health insurance premium tax breaks and much more. The recommendations were so tough that a majority of the commission’s political members ran for cover while talking about less painful options.

For more: It’s time to stop deceiving ourselves about the budget — Maine Opinion — Bangor Daily News

US ECONOMY: Deals, what deals? U.S. consumers unimpressed by 'Black Friday' discounts

Despite the Black Friday hoopla, there are still four more weeks until Christmas. With consumers showing a tendency to do much of their shopping at the last minute, analysts say Black Friday is not a strong predictor for the season as a whole.

Initial data on Friday traffic and sales are expected in the next two days from industry groups. Retailers report November sales results next Thursday.

FOR MORE: Deals, what deals? U.S. consumers unimpressed by 'Black Friday' discounts

US Economy: "How In The World Did We Get To The Point Where The Federal Reserve Is Printing Money Out Of Thin Air Whenever It Wants? " - by Michael Snyder

The Federal Reserve has more or less exhausted all of the other tools that it has traditionally used to help the economy during an economic downturn. As you can see from the chart below, the Federal Reserve has lowered interest rates during past recessions. The goal of lowering interest rates is to make it less expensive to borrow money and thus spark more economic activity. Well, as you can see, the Federal Reserve has no place else to go with interest rates. Over the past 30 years, rates have consistently been pushed down, down, down and now they are kissing the floor....

Another way that the U.S. economy has been "stimulated" over the past 30 years is through increased government spending. The theory is that if the government spends more money, that will get more cash into the hands of the people and spark more economic activity. That was the whole idea behind the "economic stimulus packages" that were pushed through Congress. However, increased government spending always comes at a very high cost under our current system. Government debt is now totally out of control.

For more: How In The World Did We Get To The Point Where The Federal Reserve Is Printing Money Out Of Thin Air Whenever It Wants? | Benzinga.com

German minister renews US Fed criticism

Germany's finance minister is arguing that the Federal Reserve's move to pump money into the financial system increases uncertainty in the global economy and undermines the credibility of the U.S., according to an interview published Saturday. The Fed on Wednesday confirmed that it will buy $600 billion of long-term government bonds by mid-2011 in an attempt to further drive down rates on mortgages and other debt in the hope of getting lending higher.

Germany is focusing on cutting its budget deficit in the aftermath of the global economic crisis, and other European countries also are cutting back following this year's eurozone debt crisis. "I have great doubts as to whether it makes sense to pump unlimited money into the markets," Finance Minister Wolfgang Schaeuble, a vocal critic of the decision, was quoted as telling the weekly Der Spiegel.

"The U.S. central bank's decisions increase uncertainty in the global economy," he added, according to the report. "They complicate a sensible balance between industrial and emerging countries and they undermine the financial policy credibility of the U.S.A."

For more: The Associated Press: Report: German minister renews Fed criticism