WHO IS RESPONSIBLE FOR FINANCIAL CRISIS

 GUEST BLOG

By Ziad K Abdelnour



I personally believe that the US government’s entire strategy now - as during the S&L crisis - is to cover up how bad things are.
But it is not only a matter of covering up fraud that has already happened. I am afraid our government also created an environment which greatly encouraged fraud….and the mortgage fraud is a lot like the fraud which occurred during the Great Depression.
Facts?
It is clear to everybody by now that our government knew about mortgage fraud a long time ago. The FBI warned indeed of an "epidemic" of mortgage fraud back in 2004. However, the FBI, DOJ and other government agencies then stood down and did nothing. The Federal Reserve turned its cheek and allowed massive fraud and the SEC has repeatedly ignored accounting fraud…..while Alan Greenspan took the position that fraud could never happen.
Later in 2006, President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations.
Moving forward to today’s Administration, we all know by now that Tim Geithner was complicit in Lehman’s accounting fraud and pushed to pay AIG's CDS counterparties at full value, and then to keep the deal secret.
As Robert Reich recently noted, Geithner was "very much in the center of the action" regarding the secret bail out of Bear Stearns without Congressional approval.
Tim Geithner, as President of the Federal Reserve Bank of New York since October 2003, was also one of those senior regulators who failed to take any effective regulatory action to prevent the crisis, but instead covered up its depth.
Further facts?
It is equally clear to everybody by now that:
• Bernanke might have broken the law by letting unemployment rise in order to keep inflation low.
• Paulson and Bernanke falsely stated that the big banks receiving TARP money were healthy, when they were not.
• Arguably, both the Bush and Obama administrations broke the law by refusing to close insolvent banks.
• Congress may have covered up illegal tax breaks for the big banks.
• Of course, deregulation by Larry Summers, Robert Rubin, Phil Gramm and many other high-level politicians and regulators also helped to grease the skids for fraud.
Comparing our current crisis to the Great Depression, the main relevance is surely here since in both cases, the government knew what it should do. Both times, it declined to do it.
In the summer of 1929 a few stern words from on high, a rise in the discount rate, a tough investigation into the pyramid schemes of the day, and the house of cards on Wall Street would have tumbled before its fall destroyed the whole economy.
Again, and not to be repetitive, the FBI clearly warned publicly in 2004 of "an epidemic of mortgage fraud." But the government did nothing, and less than nothing, delivering instead low interest rates, deregulation and clear signals that laws would not be enforced. The signals were not subtle: on one occasion the director of the Office of Thrift Supervision came to a conference with copies of the Federal Register and a chainsaw. There followed every manner of scheme to fleece the unsuspecting ....
This is fraud, perpetrated in the first instance by the government on the population, and by the rich on the poor.
Following the rule of law, the government that permits this to happen is clearly complicit in a vast crime.
So what are we to do with the fraud started at the very top with Greenspan, Bush, Paulson, Negraponte, Bernanke, Geithner, Rubin, Summers and all of the rest of the boys?
Reminiscing the principles of our Great Founding Fathers, everyone knows that the American colonists revolted largely because of taxation without representation and related forms of oppression by the British.
But - according to Benjamin Franklin and others in the thick of the action - a little-known factor was actually the main reason for the revolution.
To give some background on the issue, when Benjamin Franklin went to London in 1764, this is what he observed:
When he arrived, he was surprised to find rampant unemployment and poverty among the British working classes… Franklin was then asked how the American colonies managed to collect enough money to support their poor houses. He reportedly replied:
“We have no poor houses in the Colonies; and if we had some, there would be nobody to put in them, since there is, in the Colonies, not a single unemployed person, neither beggars nor tramps.”
In 1764, the Bank of England used its influence on Parliament to get a Currency Act passed that made it illegal for any of the colonies to print their own money. The colonists were forced to pay all future taxes to Britain in silver or gold. Anyone lacking in those precious metals had to borrow them at interest from the banks.
Only a year later, Franklin said, the streets of the colonies were filled with unemployed beggars, just as they were in England. The money supply had suddenly been reduced by half, leaving insufficient funds to pay for the goods and services these workers could have provided. He maintained that it was "the poverty caused by the bad influence of the English bankers on the Parliament which has caused in the colonies hatred of the English and . . . the Revolutionary War." This, he said, was the real reason for the Revolution: "the colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the colonies their money, which created unemployment and dissatisfaction."
Is this just ancient history?
No.
The ability for America and the 50 states to create their own respective credit has largely been lost to private bankers. The lion's share of new credit creation is done today by private banks, so - instead of being able to itself create money without owing interest - the government owes unfathomable trillions in interest to private banks.
America may have won the Revolutionary War, but it has since lost one of the main things it fought for: the freedom to create its own credit instead of having to beg for credit from private banks at a usurious cost.
As economic writer and attorney Ellen Brown has tried to teach to President Obama, Governor Schwarzenegger, and anyone else who will listen, the way out of the economic crisis is to stop paying interest to private banks for the creation of credit, and to return to the system of government-issued credit used by the Founding Fathers to create prosperity for the people and to gain independence from their oppressors.
The big question is: Are they or anyone out there listening? Go figure....
Your feedback as always is greatly appreciated
Thanks much for your consideration

THE POWER OF YOUR CHILD'S IMAGINATION

About The Power of Your Child’s Imagination: How to Transform Stress and Anxiety into Joy and Success BY Charlotte Reznick, PhD

The Power of Your Child’s Imagination will show you how to empower your child with easy, effective, and creative skills for surviving—and thriving—in a stressful world. This indispensable guide provides nine simple tools to help children cope with stress and anxiety by tapping into their imagination to access their own natural strength and confidence.

In this book you will discover how to help a child:

* Love, accept, and appreciate himself
* Reduce pain and heal other physical ailments
* Overcome fears, such as fear of the unknown, abandonment, doctors, disasters, and dying
* Deal with bedtime issues such as insomnia and bedwetting
* Cope with death, divorce, and other losses
* Handle anger, hurt, and frustration
* Achieve success at school and in sports
* Live peacefully with siblings and parents


About Charlotte Reznick, PhD

Dr. Charlotte Reznick has dedicated her life to helping children, adolescents, parents, and professionals. She is a nationally recognized child and educational Psychologist and Associate Clinical Professor of Psychology at UCLA. Upon earning her Ph.D. in Educational Psychology from the University of Southern California, she was honored with “Dissertation of the Year” for her work on the effects of parental divorce on adolescents.

For over 20 years, Dr. Reznick has pioneered therapeutic interventions with a wide spectrum of children. Responding with unerring intuition to children’s diverse needs, Dr. Reznick is best known for creating Imagery For Kids: Breakthrough for Learning, Creativity, and Empowerment. This highly insightful program of guided and interactive imagery – enhanced by music, relaxation techniques, drawing, and journal writing – can help all children achieve their highest learning potential, develop self-esteem, heal internal conflicts, and reduce overall stress.

To download a free e-book with more information on The Power of Your Child's Imagination: How to Transform Stress and Anxiety into Joy and Success and Dr Reznick , visit http://bookpromotionservices.com/reznick/. For a limited time Dr Reznick is offering a very special gift to each person who purchases a copy of her book, including over 80 free gifts, please visit http://www.imageryforkids.com/book/ for all details.

OBAMA AND FDR: A HOLISTIC APPROACH TO ECONOMIC RECOVERY

There are many who are comparing the actions of President Franklin Roosevelt with those of President Obama regarding the handling of our economic depression. I use the word depression because if we are not there, we will be soon. The following is a brief summary of FDR’s actions:

“FDR declared a "banking holiday" to end the runs on the banks and created new federal programs administered by so-called Alphabet Agencies. For example, the AAA (Agricultural Adjustment Administration) stabilized farm prices and thus saved farms. The CCC (Civilian Conservation Corps) provided jobs to unemployed youths while improving the environment. The TVA (Tennessee Valley Authority) provided jobs and brought electricity to rural areas for the first time. The FERA (Federal Emergency Relief Administration) and the WPA ( Works Progress Administration) provided jobs to thousands of unemployed Americans in construction and arts projects across the country. The NRA (National Recovery Administration) sought to stabilize consumer goods prices through a series of codes. Through employment and price stabilization and by making the government an active partner with the American people, the New Deal jump-started the economy towards recovery (fdrlibrary.maris.edu).”

Many Republicans argue that FDR’s actions actually prolonged the depression in the 30’s, created a new era of ‘big government’ and stifled the ‘free’ economic market. Many on the right of the political economic spectrum also say that Obama will and even should fail because he is not focusing on the economy. Instead, he is wasting time dealing with such silly issues as healthcare and education reform, stimulating alternative energy production and being concerned with environmental issues.

Our bodies, life, politics, economy and society are holistic. You cannot separate the parts from the whole. If a person is ill, it is necessary to examine not only the immediate symptom, but all factors that contribute to the illness. A heart attack may be the result of a combination of diet and stress in one’s life. While you can ‘treat’ the immediate issue of the heart attack, if the other issues are not resolved, the likelihood is that the heart attack will occur again. Issues in politics and society are holistic. Poverty cannot be solved simply by giving people money. Concerns regarding family values, cultural traditions, employment history, education and even health come into play. Obviously, very few politicians get elected or are effective if they only deal with single issues and not the complete array of problems confronting our society.

One cannot solve our economic crisis simply by focusing on banks. We have already seen that to be true. We cannot solve the crisis by focusing on credit; that has been obvious. Those who say focus on the economy only are the same ones that had no problem with giving money to the banks and who also have big problems with new rules or regulations. After all, we do not want to disrupt the ‘free’ economy. I am not really sure what economy they refer to. If by free they mean let business do as they please, one cannot help but see that this very attitude created our current issues. Do they mean that business should be free to have their products produced in Chinese sweat shops? Do they mean that business should be allowed to produce crap that must be replaced soon after the purchase? Do they mean that business should be free to destroy the basic eco-fabric of the planet in order to keep profits and bonuses high? Do they mean free to charge usurious interest rates? Do they mean free to convince you that you need products that have no lasting value? By focusing on the economy do they mean to simply deal with the issues of huge corporations, at the expense of the small businessman?

In order to deal with our economic crisis, I think president Obama is right. Our economy is not AIG or CitiBank. A truly functioning economy is based upon an educated consumer. People must be healthy to be productive. We cannot continue to destroy the environment else we may have profit, but no world in which to spend it. Some would argue for the quick fix. This will not work. Our issues are to complex and too braid to think we can go back and do things the way they were done in the past. Our economic body must be addressed holistically. FDR saw this in the 1930’s. Was he totally correct? Maybe not. However, he saw that the depression required more than just fixing banks. Yes, we have to deal with energy, the environment, agriculture, education, healthcare and a total review of our economic rules and regulations if we are to have any chance of reviving our economy. If we do not do these things now, there may never be another chance in the future.

HOW TO ALTER THE AMERICAN ECONOMY!

Despite the economic slowdown, layoffs, mortgage foreclosures and a generally depressed economy, the American consumer is still the most powerful economic force on the planet. With selected use of its holiday spending, the consumer can forever alter the American and world economy. Solace should be taken in the fact that billions of dollars are still being spent to get you to buy, buy and buy this holiday season. How you spend your money and what you spend your money on can forever alter what and how products are produced.

With great sadness I heard the story of the death at a Wal-Mart store where hoards of consumers trampled a person to death just to get a shot at holiday bargains. Those that did this represent all that has been wrong with our economy and the consumer. With the promise of ‘big savings,’ throngs of frenzied shoppers did just what large corporations want the consumer to do; spend their money mindlessly! If we are to come out this emerging depression and if we are to save the planet from increasing risks of environmental collapse, the consumer must use its spending power to alter the way business does business.

Image this as headline news on December 26th. “While holiday retail spending was the worst in recent memory, the American consumer sent a clear message to businesses; they want change and will use their hard earned dollars to get it. Americans abandoned their traditional habit of buying anything that carried a ‘sale tag’ and sought out products that were natural, eco-friendly, lasting and American made. While almost all retail sectors were down, there were sharp rises in natural health and beauty products, small scale solar products, items made with glass and steel instead of plastic, crafted toys, natural fiber clothing and durable goods that have a sound history of actually being durable. Store owners, dismayed with all of the products still left on the shelves said that next year, they will abide by consumer wishes and stock those items that that meet changing consumer preferences.”

This type of story does not have to be a fairytale. It can happen and it can happen now. As a consumer, you can buy non-plastic item. Stainless steel water bottles, glass baby bottles, and toys made from safe materials can be found. Yes, these may cost a little more but once this type of spending habit is developed, costs will come down. If need be, look on the internet and shop on-line for natural products and stop trampling people to death. If internet sales of such companies sky rocket, businesses will get the hint. Find clothing that is made of natural fibers. If it costs a lot, buy fewer items. At least you know that the gift will not give people skin disease from petro-chemicals in the fibers. There are all types of natural health and beauty aids. Buying these products will tell companies to stop putting carcinogens in make-up. There are hundreds of solar and other alternative energy products that you can buy on the internet. From outdoor solar lights, wind-up radios and flash lights, to solar powered chargers for laptops, cell phones and IPods, spending on these items will let industry know that you are serious about alternative energy products. It is said that form follows thought. Know also that products follow dollars. Instead of cheep particle board furniture, but those made of solid wood. If it costs too much, get one piece at a time rather than buying a whole set. At least what you get will last and will not contain chemicals used to make pressboard.

And you know, you can always buy books! Instead of just the big names from the big chain stores, visit the smaller independent bookstores and buy some unknown authors. Buy books from small presses instead of the Big Six publishers that have controlled 90% of what they offer you to read. Save some trees and buy a Kindle reader from Amazon and download books in seconds. Find books that not just entertain but that also inspire others to help create a new way of life and a new way of doing business. Check out authors like Jack canfield, Juna Jinsei, Susan Shumsky, Marvin Wilson, Linda Walker, Joyce Moore, Brian Doe and yours truly, Philip F. Harris.

The point of all of this is that you, the consumer, stand at a crossroad. You can continue to spend money on poorly designed sometimes dangerous and useless non-lasting items. These items will all end up in the overflowing landfills in weeks and will add to climate degradation. Alternatively, you can choose the path that creates a more sustainable world and buy products that have meaning and durability. You can choose to trample or you can choose to alter out economic system. Tell businesses what you want and do it with your dollars. You have the power. Don’t continue to put that power in the hands of others.

IS THE U.S. HEADED FOR DEPRESSION?

Some say it is the declining value of the dollar; others blame drought, oil prices, and the mortgage crisis. No matter who or what you blame, the certainty is that the American economy is in crisis. Despite appearances and rhetoric, the depth of the crisis confronting Americans and the world go deeper than many are willing to admit. While economic pundits and politicians are finally using the word “recession,” there are those who are beginning to think depression.

This past weekend we went grocery shopping at the largest retailer in the area, one that is the largest worldwide. What became immediately clear was that there were many wholes in the shelves which, on any normal Saturday morning, would have been stocked to overflowing. In addition to our normal bag of flour having risen from $2.99/5lb. bag to $4.99, it was clear that this commodity was in short supply. The same was true for rice, eggs, meats and many other staple products. The shelves were certainly not bare, but the gaps and low stock was clearly evident. While this could have been attributed to late deliveries, concern rose the next day when a friend went shopping at a different chain and found a similar situation; jacked prices, no flour, little rice and obvious gaps in product stock.

There is no question that rising fuel costs are having a dramatic impact on food prices and availability. Reports are aired everyday about the soaring costs of staples. The truck driver rally in Washington, D.C. could not help but go unnoticed by the media as the plight of drivers worsens. Still not sure how widespread and how deep this problem had reached; I conducted a very informal survey of various writer groups nationwide. Being an author and always watching the world around me for ideas, it seemed that members of such groups would also have their fingers on the economic pulse in the areas in which they lived. I sent a survey to numerous groups and asked what they were seeing at the stores in terms of prices and product availability; whether they were going alter their purchasing habits; if they were going to buy more or less consumer goods; how they would spend their “economic stimulus check;” the price of gas in their area and if they were going to change their eating, driving and shopping patterns. The results, which are being verified by growing news reports on the economy, are frightening. One cannot help but wonder if some of the events that led to the Great Depression of the 30’s are being to be repeated. In the late 1920’s there was overproduction, a growing gap between rich and poor, a large increase in foreclosures and large stock investments by those who were really on the economic margin. Does this sound familiar? Given attempts by the Federal Reserve, Congress and even businesses to try to stimulate consumer buying, are we in a situation where a silent desperation pervades those in the economic know?

The survey spanned the nation. Writers in both cities and rural areas from the East Coast to Alaska to the Mid-West responded. While I will not report every response, I will show the nature of most responses along with some interesting quotes and thoughts from those who sent in the survey. The following are typical responses (by the time this article is published I am sure the numbers will be a little out of date-I am sure they will all be higher):

“Yep, seen it, experiencing it here in farmland rural Pennsylvania where cow manure has become THE fertilizer - the only one that won't bankrupt. Feeding a household of five including two always hungry teens, it's glaringly obvious things are going downhill. Our cupboards are dwindling to the barest of bare necessities. Our veggie
garden is doubling this year and I'm checking into a chicken coop. Has anyone seen the price of eggs? Eggs for crying out loud! They more than quadrupled in price in just a few weeks here.
I read somewhere that 25% of the US grain has been taken for alternate fuel possibilities - can't find it again and have to ask if it's true? If so, whose stupid idea was that? Don't take it from existing supplies, make it. I'm thinking maybe my hubby isn't so nuts in busting his behind running his mother's grain farm along
with his full time job this year. I may pitch in. I've got family in all areas, farming (grain and livestock), trucking, construction, and I've seen how all of it is being hit.”

“I'm tacking on some things that worry me. I came from California where I made a decent wage. When we moved to TN a few years back, housing was much cheaper here than CA, but that was about all. Everything else was equal, food, clothing, cars, etc. Gasoline was still a little cheaper.
Wages here are 1/2 of what people make in California, and very few companies provide any type of medical or dental insurance. I was shocked to learn that the job I'd done for over 23 years in California required the completion of a master's degree in TN, which I do not have, yet the salary was 1/2 of what I made. They would not allow me to apply, even though my qualifications were a perfect match for the job.
The typical wage here is $8.00-10.00 per hour. My husband is a truck driver for a local company and makes $14.00 which is considered high. Of course, his company provides no insurance or extra money towards such. I noticed today that gasoline has climbed another 2 cents to $3.57 and diesel is $4.72. Already my husbands company is cutting back on runs and trying to combine them, so we're very worried about our financial future. I wonder how people who make $8.00 can afford the fuel to get to their job. Basically they are working to buy gas to get to their job...where will the money come from for all their other expenses. It's very scary.
It just ticks me off beyond belief that we are paying over a billion dollars a day for a war, borrowing money from China and our economy is going down the toilet, but President Bush, when asked will still claim that we're in good shape.”


“I live in south central Kentucky where nothing is close. Driving is a necessity. If gas prices get much higher, we are thinking of getting an Amish cart and training one of our horses to be driven. It would take all day to get to town but we could go to the convenience store.
We still have good availability of products but the prices are going up in the supermarkets. I no longer buy beef. Instead I have a friend who raises Black Angus cattle and we split a cow. I have a friend who is raising sheep so I will probably buy a couple of the lambs. I shop at the Amish bulk food store in the county and save a lot over the supermarket prices. I will be eating fresh veggies all summer, grown in our garden or those of my neighbors. Gas prices are $3.59.9 for regular as of last Sunday. Over $4 for diesel! I combine errands and don't leave my farm unless I have more than one place to go in the same direction. We are eating out less.
We are planning on saving the stimulus check. Just an aside, my daughter-in- law is in retailing in NYC and she says we are in a major depression. People are just not buying.”

“In the Seattle area, wild salmon is going for $19.99 a pound, gasoline at
Costco $3.65 at the regular gas stations $3.79 a gallon. People here are
driving less, eating out less, and purchasing food at the lower end stores
such as Grocery Outlet and Cash and Carry. We were in a huge Asian market
one week, rice stacked up as high as an elephant's eye. Now just try to find
regular rice - many of the people here are purchasing rice to send to
relatives overseas.
Unfortunately, I am a volunteer driver for Catholic Charities - IE, I haul people who don't have transportation to the doctor - so have little control over my gas consumption. I drive 700 to 900 miles a week so buy from 30 to 50 gallons a week. They supposedly pay us for our gas used, but are consistently six months or so behind in updating their prices and the past six months have been the worst ever.”


The following are snippets of responses from around the country. It is evident that people are frustrated and even frightened. While products are available, the current trend in prices is continuing upward. Recent reports indicate that state governments are cutting back on budgets and employees; tourist destinations are already feeling the pinch and more and more storefronts are displaying “space for rent” signs. Since many plan on reducing driving, this summer does not bode well for that industry. Agriculture reports show late plantings of corn and wheat crops and who knows what summer weather will unleash. It is clear from U.N. reports that the food situation is rapidly declining in poorer nations as droughts and floods destroy staple crops. I am sure many of the comments that follow are a mere shadow of what is beginning to happen in your area as well:
I used to be able to buy a pack of chicken breasts for $3 or $4, now the same pack is $7.
I traveled to Spartanburg where gas was $3.29/gal (middle grade). When I got back to ATL to fill up, it was $3.49/gal. Last weekend, I paid $3.69, now it is $3.79 or $3.89.
Saturday is usually a busy day in Fayetteville, but there were no cars in all five lanes at one of the busiest intersections. Some of the independent stores had no cars in parking lot and it looked like they were closed.
How will you use your economic stimulus check? Put it in savings
Gas $3.74 Rockford, IL
Prices, though? Meowza! They are up, and rising!
But am I buying what I don't really need? Not on your
life. Not with heating oil where it is, and climbing.
I'm trying not to take unnecessary trips, and I'm certainly not
eating out very often. I'm using my old lawn mower, which I had
thought about replacing this spring.
I haven't noticed any shortages except the "sale items," but prices have definitely increased.
I have received mine (stimulus check) as a direct deposit, and it will stay in the bank. I don't plan on buying anything new, just my usual necessities.
$3.89 for medium grade
I haven't noticed a decrease in the availability of basics, but prices have risen considerably here in PA--this includes basic such as eggs, flour, butter....
Eating and shopping will all be dependent on what I can afford. I anticipate, if the prices keep rising, having to forgo some of the necessities.
in SE Michigan. Prices, however, are another story. Eggs have doubled, milk, dairy products skyrocketing. Good beef cuts (steaks, prime roasts, etc.) are a rare buy in our household these days because they are so expensive. Fish/seafood products are also beyond reach as a steady diet.
Save those left-overs and use them as part of a creative low-cost menu for tomorrow's dinner.
Get caught up on a bill or two and treat ourselves to a gourmet (home cooked) dinner.
$3.65/gal
Less frivolous foods, the munchies, you know. Bulk peanuts and fresh raw veggies make good inexpensive snacks. 86 all the packaged crap. Drive only when and where necessary. Make a list. Plan a driving session in a well-routed circle that accomplishes several chores in one outing. Planning for a vacation now includes high on the list, "how much will it cost in gas to get there and back?" Shorter trips/destinations if you are driving a car.
I've noticed the prices skyrocketing - quadrupling in a matter of weeks for some things like eggs... A lot of what I used to get I can't find local anymore.
It will go toward an alternate heating source, most likely a wood burner in the basement.
Last I looked, diesel was $4.59 a gallon and today's local report said low grade is now $3.62.
Anything we do over the summer will be local, no major travel.
Rural farmland in the mountains of Pennsylvania where the cost of living is very low and so is the average family income.
I am concerned about stories on the news about Sam's Club and others
rationing rice. Is there a rice shortage?
I live in Arizona in a town between Phoenix and Tucson. There is no real public transportation in my area, and, with summer temperatures going well into
the triple digits for about 4 months of the year, riding a bicycle really isn't an option.
Let's face it. The American people are getting hosed by greedy speculators who are driving the price of oil, (hence food prices) artificially high.
I don't blame people for not buying. Prices are going out of sight. Yesterday, gas here was $3.79 and I bet it's up from that today.
Food prices are up varying percentages, from 15-percent to nearly 50-percent on many less expensive cuts of meat. Hamburger (80 percent lean) has risen from about $1.99 per pound a year ago to nearly $4 per pound
Overall, my daughter said the supermarket tab here for her family of four has jumped from about $130 per week to nearly $200.
Also, shortages of some products are starting to become apparent, with some shelves bearing large gaps in mute testimony to lack of availability of rice and flour…
Hope that helps
As to gas prices: Spokane, WA prices range from $3.50 to $3.70. I live in a small town where our one station is $3.87 for unleaded. More to the point, Diesel in Spokane that has more effect on food prices is about a dollar higher at $4.50 to $4.80.
Unfortunately, I am a volunteer driver for Catholic Charities - IE, I haul people who don't have transportation to the doctor - so have little control over my gas consumption. I drive 700 to 900 miles a week so buy from 30 to 50 gallons a week. They supposedly pay us for our gas used, but are consistently six months or so behind in updating their prices and the past six months have been the worst ever.


So what does all of this mean? The early warning sign are there and I would strongly suggest that people keep an eye on commodity report, climate calamities, and, of course, the price of fuel. There is little doubt that people will be tightening their belt, going out for meals less, traveling shorter distances and using their “stimulus” checks to keep their head above water this summer. Living in a region that depends on fuel oil, it is scary to hear that contract prices for hearting oil less winter will approach $4.00/gallon. This will surely collapse to the economy in the Northeast. If diesel continues to rise, truckers will be at a loss and food will simply not be delivered to stores. Already, many truckers who deliver saw logs are calling it quits. How long can fishing fleets absorb continued price rises? Summer employment looks bleak. The key is to be alert and be informed.

Is there is bright spot here? If you read my article, “The Mother of All Course Corrections,” you will see that the consumer is now in a position to finally make intelligent buying decisions. You can affect what is produced with your valued dollars. If you stop buying the junk food, stop buying sodas, buy only healthy foods and cereals, the market will have to respond. This is your opportunity to finally make a difference in terms of what is produced and what you consume. Insist on quality and use your power to create a more sensible, sustainable economy. The time is at hand for choices, choose wisely!