Consumer Confidence Crashes

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The combination of high oil and gasoline prices, rising food costs, higher health insurance premiums and the likelihood of future inflation has jarred consumer confidence, creating a major crisis for the Obama administration.

The collapse has been sudden and dramatic.

In December, the consumer confidence scale in the Rasmussen Poll stood at 81.7 percent. But in January, euphoria set in. President Obama compromised on the George W. Bush tax cuts, the nation seemed to be coming together after the Gabrielle Giffords shooting, and a Republican House sat poised to stop any new spending or social experimentation. On Jan. 11, the Rasmussen confidence index rose to 88.3.

Then reality dawned. Unemployment remained persistently high, economic growth was largely stagnant, and partisan bickering resumed. The confidence level on Feb. 11 dropped to 84.5.

Then, the bottom fell out. The daily Rasmussen polling reflected a drop day after day until, by March 11, the index had fallen to 73.1, its lowest level since it registered a 69 in July of 2009, in the depths of the recession.

The false dawn of January has faded, and the hard, cold reality of a likely second recession is setting in. But this recession is accompanied by the likelihood of inflation, a stagflation syndrome that will probably grip America for years. And which will likely take a manmade recession, on the order of 1979-82, to counter it.

Will Obama get re-elected? No way! In the teeth of the economic catastrophe that is shaping up, his chances are doomed.

The tsunami in Japan, perhaps the greatest tragedy since 9-11, will further impede any prospect for economic growth. There will be a demand for spending to repair the devastation of the quake. But Japan is tied with China as the world’s second largest economy, generating12 percent of the global gross domestic product.

With Japan neither producing nor buying for the foreseeable future, the drag on the global economy will be profound.

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  • cgerber

    What did the CLPT's (Communist-Liberal-Progressive-Traitors) of this nations expect from Nobama? Let see never had job, never ran any type of business, sponsored a Payroll. Never has managed any type of organization/Department. Never has been re-elected at any political post he has held either by choice or he knew it was time to move on. Ask yourself this question- if you applied for a high powered job in any Global 500 fortune Corporation would you get this job if you denied access to your: School College records, Transcripts, Thesis, Academic papers, birth certificate, and Citizen status in this country. Since your dad was a Kenyan citizen? We all know the answers, yet the useful idiots and poverty pimps are all in denial! The can't come to grips and fact that their evil child is evil, a traitor to them and everyone else. What promise from the campaign trail has he kept? He is in total contempt of the Constitution, the Bill of Rights, America, and people’s personal liberties. He is clueless when it comes to how the world works and what people need and want. What an arrogant ASS!

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