Tuesday, January 25, 2011

Priorities Priorities

The number one consumer issue in my book has been the cost of energy since 1975. Obama in his dash to control our lives, steered the conversation to the cost of health care insurance. Notice I said insurance, not the cost of medical services and supplies.

Granted medical insurance isn't cheap, but neither is gasoline or home utilities. The vast majority of us pay for in one form or another utilities and fuel. Less than half of us use our medical insurance policies in a given year. Some of us didn't even go to the doctor last year.

Out of curiosity I thought to check the CPI- (consumer price index) to see what the rate of inflation was for 2010. Interestingly enough energy was a bigger inflationary factor than medical . Energy costs rose a factor of almost 5 times that medical costs.

Obama's policies have exacerbated the problems. Insurance policy rates have climbed because of his attempt to nationalize the US's healthcare system, and at the same time Obama's anti-carbon anti drilling policies have created an unwanted spike in  energy. 

Food and transportation prices are increasing because energy is a key component used in producing and providing these consumer necessities.

We are awaiting the inflationary  impact of Obama's 2011 QE2 $600 Billion flooding of the US currency market.

Can someone say $5.00 a gallon gasoline.......if we are lucky.

Steve
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Table A. Percent changes in CPI for All Urban Consumers (CPI-U): U.S. cityaverage
12-mos. ended  2010 Dec.

 All items.................. 1.5

Food......................  1.5

Food at home.............  1.7

Food away from home  1.3

Energy.................... 7.7

Energy commodities.......13.9

Gasoline (all types).... 13.8

Fuel oil ............ 16.5

Energy services.......... -.1

Electricity.............  .7

Utility (piped) gas

service..............  -2.8

All items less food and

energy................. .8

Commodities less food and

energy commodities....  -.4

New vehicles............  -.2

Used cars and trucks....  3.7

Apparel.................  -1.1

Medical care commodities

..................  2.9

Services less energy

services..............  1.3

Shelter.................  .4

Transportation services 2.8

Medical care services...  3.4





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