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Disposable income falls as prices jump, data show
Marketwatch ^ | 3.28.11 | Greg Robb

Posted on 03/28/2011 7:51:59 AM PDT by Free Vulcan

U.S. PCE inflation up 0.4%, most since July 2008; spending up 0.3%

Real disposable income declined in February as consumer prices jumped by the largest amount in 2 1/2 years, the Commerce Department reported Monday.

Economists said the data show that higher prices for gasoline is starting to take some of the steam out of the economy.

The personal consumption expenditure index, which Federal Reserve officials say is a more accurate gauge of inflation than the better-known consumer price index, increased 0.4% on the month, the largest monthly gain since July 2008.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Breaking News; Business/Economy; Culture/Society; Government
KEYWORDS: consumption; democrats; economy; hopeychangey; inflation; obama; prices; spending
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This doesn't say anything we don't already know, but it's one of the rare articles that doesn't paint things with a varnish of glowing BS. Some of the comments in the article are fairly blunt about what inflation is doing to the economy.
1 posted on 03/28/2011 7:52:02 AM PDT by Free Vulcan
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To: Free Vulcan

Anybody who actually does their own grocery shopping has seen this coming for years. Food prices are skyrocketing around here (North Carolina). Everything is going up or having its package downsized for the same price, and it was happening BEFORE gasoline shot up.

}:-)4


2 posted on 03/28/2011 7:56:33 AM PDT by Moose4 ("By all that you hold dear on this good Earth, I bid you stand, Men of the West!")
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To: Free Vulcan
Central planning does not want us to have any spending money to donate to other the the demorats.
3 posted on 03/28/2011 8:00:23 AM PDT by mountainlion (America land of the free because of the Brave.)
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To: Free Vulcan
Disposable income falls as prices jump, data show

prices jump
income falls


No, really?

Seriously, did Captain Obvious write this article?
4 posted on 03/28/2011 8:01:25 AM PDT by arderkrag (Georgia is God's Country.----------In the same way Rush is balance, I am consensus.)
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To: Free Vulcan

There is no room for the middle class in Obama’s world.


5 posted on 03/28/2011 8:02:47 AM PDT by saturn1964
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To: Moose4

The result of the healthcare initiative. Most likely. Companies calculating the cost to them.


6 posted on 03/28/2011 8:10:33 AM PDT by ican'tbelieveit
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To: Free Vulcan

You people in vacation land will have a long slow season. Better tighten the old belt another notch.


7 posted on 03/28/2011 8:16:21 AM PDT by org.whodat
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To: Free Vulcan

You people in vacation land will have a long slow season. Better tighten the old belt another notch.


8 posted on 03/28/2011 8:17:03 AM PDT by org.whodat
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To: saturn1964

You are 100% correct!!! Welcome to the new America, the world’s leading “third world nation” under the dictatorship, guidance & direction of POTUS Barack Hussein (Idi Amin) Obama!!! Americans, you done real good by electing “The Destroyer of the American nation”!!!


9 posted on 03/28/2011 8:19:16 AM PDT by JLAGRAYFOX (America Adrift At Sea Without A Captain!!!)
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To: Free Vulcan

A lot of folks I know are getting serious about their gardens.


10 posted on 03/28/2011 8:21:55 AM PDT by Oberon (Big Brutha Be Watchin'.)
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To: Moose4
No kidding on the package sizing.

I bought what I thought was a 1 lb. box of Barilla wheat pasta... cooked it for diner and was wondering how the heck I nearly devoured all I made. I looked at the box... same size box as the non-wheat version, but the wheat version was ~ 12 oz.

Companies... do us a favor and do NOT trick me... you pi** me off when you do that.

I'm starting to see labels on packaging that don't tout "new and improved" ... but instead indicates something along the line of "same weight as before."

Pathetic.

11 posted on 03/28/2011 8:23:44 AM PDT by Trajan88 (www.bullittclub.com)
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To: org.whodat

Yep, time to get revved up about the great Staycation we’ll be taking this year .... to the local pool.


12 posted on 03/28/2011 8:28:26 AM PDT by LibsRJerks
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To: Free Vulcan

We are likely to see another massive wave of layoffs towards the end of this summer or early fall if gas prices hit the projected $4.50/gallon. If they go over $5/gallon, then we will see another major firm (like Bear Sterns) go belly up.


13 posted on 03/28/2011 8:37:54 AM PDT by Thunder90 (Fighting for truth and the American way... http://citizensfortruthandtheamericanway.blogspot.com/)
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To: Free Vulcan

There are some high dollar items we want to buy. We’ll be buying right now to avoid price increases that are no doubt coming.


14 posted on 03/28/2011 8:40:37 AM PDT by CodeToad (Islam needs to be banned in the US and treated as a criminal enterprise.)
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To: Free Vulcan

The American middle class was really the only obstacle to a One World Government. When we have been economically broken the Globalists can act with impunity. Here is a perfect example. The Globalist U.N. says bomb Libya. Globalist Obama says yessa, massa. The U.S. Congress and the American people have no say in the matter but have to provide the blood and the treasure. The Globalist then rub it in by explicitly stating on national T.V. that Libya presents no threat nor even in the national interest but Americans are going to be forced into a war with them anyway. That’s not a democracy or a representative republic. That is the New World Order.


15 posted on 03/28/2011 8:45:23 AM PDT by Roninf5-1 (If ignorance is bliss why are so many Americans on anti-depressants?)
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To: Roninf5-1
The American middle class was really the only obstacle to a One World Government.

According to Saul Alinski's Rules for Radicals, the middle class is the enemy. They have all the money and voting power because of their size. The goal is to destroy the middle class.

16 posted on 03/28/2011 8:49:23 AM PDT by concerned about politics ("Get thee behind me, Liberal")
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To: Thunder90
Of the 8 or 9 gas stations I passed on Sunday, the lowest price for regular was $4.03...at an AM/PM where they charge you to use your debit card.

Yes, gas will hit $5.00 this summer. Count on it.

17 posted on 03/28/2011 8:51:47 AM PDT by Mariner (USS Tarawa, VQ3, USS Benjamin Stoddert, NAVCAMS WestPac, 7th Fleet, Navcommsta Puget Sound)
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To: Free Vulcan

The left want food prices to soar by what ever means necessary.

High food prices gives the left the excuse to take over the food industry.

Control the distribution of food and one can control the population.

Most folks—NOT ALL—will give up anything including rights and GUNS in order to feed their family.


18 posted on 03/28/2011 8:55:16 AM PDT by Le Chien Rouge
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To: Free Vulcan

The bread I bought last week is now $.74 a loaf more.


19 posted on 03/28/2011 8:56:50 AM PDT by synbad600
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To: Free Vulcan

Someone just told me that there will be an inflation adjustment in Social Security that will all go for medicare cost..

Obama’s policies are killing Americans..


20 posted on 03/28/2011 8:59:52 AM PDT by RnMomof7
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To: CodeToad

We replaced our major appliances that needed replaced, and are finishing some remodeling work before building materials get too high. It’s probably a good idea to get what you know you need NOW. You have the right idea. It’s starting to feel like the late 70’s all over again.


21 posted on 03/28/2011 9:02:19 AM PDT by Marie Antoinette (Proud Clinton-hater since 1998.)
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To: Roninf5-1
The Globalist U.N. says bomb Libya. Globalist Obama says yessa, massa. The U.S. Congress and the American people have no say in the matter but have to provide the blood and the treasure.

Oh they still fear us or they wouldn't have pulled this. They needed a smokescreen in Libya while they install Al-Quaeda in Yemen on the Saudi Peninsula.

22 posted on 03/28/2011 9:03:37 AM PDT by Carry_Okie (The environment is too complex and too important to manage by central planning.)
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To: Carry_Okie; Roninf5-1
Oh they still fear us or they wouldn't have pulled this. They needed a smokescreen in Libya while they install Al-Quaeda in Yemen on the Saudi Peninsula.

The 'kinetic' military action in Libya only serves to aid al-Quaeda and the Moslem Brotherhood in Libya.

Libyan rebel commander admits his fighters have al-Qaeda links
23 posted on 03/28/2011 9:08:35 AM PDT by algernonpj (He who pays the piper . . .)
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To: algernonpj
The 'kinetic' military action in Libya only serves to aid al-Quaeda and the Moslem Brotherhood in Libya.

And the moslem brotherhood is taking over in Egypt as well. I believe this is what Oboma wants to see.

24 posted on 03/28/2011 9:11:32 AM PDT by concerned about politics ("Get thee behind me, Liberal")
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To: algernonpj
Libyan rebel commander admits his fighters have al-Qaeda links

Yeah, I knew about that, but it doesn't prove much. Rebellions like this are usually a complex brew of interest groups, all looking to come out on top. Whether AQ has the upper hand or not I don't think anybody really knows.

25 posted on 03/28/2011 9:14:37 AM PDT by Carry_Okie (The environment is too complex and too important to manage by central planning.)
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To: concerned about politics
"The 'kinetic' military action in Libya only serves to aid al-Quaeda and the Moslem Brotherhood in Libya."

And the moslem brotherhood is taking over in Egypt as well. I believe this is what Oboma wants to see.


I agree, Obama the the NWO want the Moslem Brotherhood whose goal is a world wide caliphate installed across northern Africa, in the Arabian Peninsula, up to Europe and across to Asia.
26 posted on 03/28/2011 9:16:05 AM PDT by algernonpj (He who pays the piper . . .)
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To: Free Vulcan
Here's the CPI unvarnished by the substitution affect, hedonics index, and geometric weighting:


27 posted on 03/28/2011 9:18:57 AM PDT by algernonpj (He who pays the piper . . .)
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To: mountainlion

Will there be any demonstrations thanking Big Brother for increasing the chocolate ration to 20 grams?


28 posted on 03/28/2011 9:25:53 AM PDT by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
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To: Free Vulcan
This is impossible.

Helicopter Ben Bernanke tells us so.


29 posted on 03/28/2011 9:27:03 AM PDT by Uncle Miltie (The 0bamaNation of America slides toward death as planned.)
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To: algernonpj
"the CPI unvarnished by the substitution affect, hedonics index, and geometric weighting"

Tell me more. What is the source? What are those variables? How are they defined? What prominent economists point to the SGS Alternate as more rational?

I have no judgment about whether the SGS Alternate is more accurate, it may very well be. I just need to understand it first. Please advise.

30 posted on 03/28/2011 9:30:40 AM PDT by Uncle Miltie (The 0bamaNation of America slides toward death as planned.)
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To: algernonpj
The 'kinetic' military action in Libya only serves to aid al-Quaeda and the Moslem Brotherhood in Libya.

Also a reminder, Oboma was born and raised a Muslim. In order to bring back the 12th Eamon, there has to be chaos and blood shed in the streets. Allowing the Muslim brotherhood, or Al Quaeda, to take over the middle east will accomplish that goal.
Also, because of Obomas economic and environmental policies, the worlds economy is going bust. This, too, is causing the world to rise up in disarray.
Everything Oboma has done so far has created chaos. (Name one thing he actually did right.)
Even Obomas agenda is chaos. It's all over the place.

31 posted on 03/28/2011 9:30:45 AM PDT by concerned about politics ("Get thee behind me, Liberal")
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To: Free Vulcan

You mean we simply can’t print more money for our personal use?


32 posted on 03/28/2011 9:36:49 AM PDT by Hodar (Who needs laws .... when this "feels" so right?)
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To: Marie Antoinette

“It’s starting to feel like the late 70’s all over again.”

Kinda like late 1971 right now.


33 posted on 03/28/2011 9:50:56 AM PDT by CodeToad (Islam needs to be banned in the US and treated as a criminal enterprise.)
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To: Carry_Okie
"Libyan rebel commander admits his fighters have al-Qaeda links"

Yeah, I knew about that, but it doesn't prove much. Rebellions like this are usually a complex brew of interest groups, all looking to come out on top. Whether AQ has the upper hand or not I don't think anybody really knows.


The chance of al-Quaeda and the Moslem Brotherhood taking over if Quaddafi is toppled are great. Look at what is going on in Egpyt. People living in Islamic cultures have a profoundly different world view than Westerners.

There is no concept of freedom as we think of it. "In the Western world, we talk all the time about freedom. In the Islamic world, freedom is not a political term. It’s a legal term: Freedom as opposed to slavery.". In other words one could live under Sharia and be free.

From the same interview with Bernard Lewis (ME expert): "But Lewis regards a dash toward Western-style elections, far from representing a solution to the region’s difficulties, as constituting “a dangerous aggravation” of the problem, and fears that radical Islamic movements would be best placed to exploit so misguided a move". [Emphasis mine]

There is no history or tradition of democracy; loyalty is not to a nation state but to one’s tribe and Islam. OldDeckHand describes it more eloquently here.
34 posted on 03/28/2011 10:00:35 AM PDT by algernonpj (He who pays the piper . . .)
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To: algernonpj
The chance of al-Quaeda and the Moslem Brotherhood taking over if Quaddafi is toppled are great. Look at what is going on in Egpyt.

Knew that too, but the two, although associated, are not the same. It's a difference of logistics and command, which, when you are talking about controlling a country, is everything.

In other words one could live under Sharia and be free.

One could say the same about liberty under Biblical Statutes, a subject upon which I'm something of an authority.

Lewis' fears are legit, but not determinative. I suspect the outcomes between Libya and Egypt are likely to be different because of the Egyptian military and still hold that we would be better off leaving Qadaffi in power and helping the Saudis deal with Yemen, which is a truly dangerous situation. Hence my point about this being a treasonous smokescreen.

35 posted on 03/28/2011 10:12:41 AM PDT by Carry_Okie (The environment is too complex and too important to manage by central planning.)
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To: ican'tbelieveit

Healthcare??

Then why is it happening in Canada?


36 posted on 03/28/2011 10:16:08 AM PDT by Soothesayer9
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To: Free Vulcan

AH come on folks the Gov doesn’t count food and energy in the CPI...so inflation doesn’t exist.

It’s your imagination/S


37 posted on 03/28/2011 10:27:30 AM PDT by Marty62 (Marty60)
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To: saturn1964

“There is no room for the middle class in Obama’s world.”

How can there be. He doesn’t know they exist. The rich get richer. The poor get poorer. The middle class either is rich or poor, depending on what’s expedient for the demagoguery du jour. If he’s socking the middle class, they’re rich. If he’s holding the middle class up as victims, they’re poor. But they don’t really exist, except to the extent that they fit into one of the two paradigms, in his view.


38 posted on 03/28/2011 11:09:38 AM PDT by Eleutheria5 (End the occupation. Annex today.)
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To: Free Vulcan

Sucks to be you peasants. LOL!

Now pay your taxes - we in the Ruling Class need raises. :D


39 posted on 03/28/2011 11:38:17 AM PDT by Tzimisce (Never forget that the American Revolution began when the British tried to disarm the colonists.)
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To: Free Vulcan

According to Gas Buddy website, the cheapest gas in San Diego today is:

Arco and Costco - $3.87 reg

Military exchanges - $3.85 reg


40 posted on 03/28/2011 11:45:35 AM PDT by acoulterfan
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To: Thunder90
...if gas prices hit the projected $4.50/gallon. If they go over $5/gallon...

I have a round-tip commute of 52 miles (groan).

41 posted on 03/28/2011 11:45:57 AM PDT by American Quilter (DEFUND OBAMACARE.)
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To: Free Vulcan

So the spending only increased because everything went up? Ha!


42 posted on 03/28/2011 1:13:00 PM PDT by CommieCutter (Promote Liberal Extinction: Support gay marriage and abortion!)
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To: Free Vulcan

Captain Obvious explains Economics!


43 posted on 03/28/2011 1:39:39 PM PDT by DannyTN
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To: Uncle Miltie
The chart is from Shadow Stats. You can read on the home page how John Williams, a private consulting economist, out of necessity became a specialist in government economic reporting.

I got interested in Shadow Stats when I found that Williams chart more closely reflected reality for me and friends who ran small businesses that the government stats.

There are links to various primers including the CPI, Unemployment, & GDP.

SS Primer on CPI

In addition to separating out the cost of food and energy from core inflation, there are several biases understating inflation that have been built into the CPI.

Originally the CPI was designed to measure the cost of a fixed basket of goods, i.e. comparing apple to apples. The rationale behind this was to be able to accurately measure return on investment in relation to inflation, and to be able to accurately measure how the standard of living one can afford on a given income stands in relation to inflation.

In the early 1990’s the ‘substitution effect’ was introduced as a result of the Boskin Report which deemed the fixed basket of goods was irrelevant. For example if the price of steak went up ‘too much’ the price of hamburger, chicken, or Spam was substituted. The CPI morphed from the cost of maintaining a certain standard of living to the cost of maintaining a declining standard of living.

Information about using substitution is found here (Boskin Commission Report). The example used is chicken vs beef.

The actual steak vs hamburger is found here (Panel Sees a Corrected Price Index as Deficit-Cutter). In the same article you'll see references to substitution and quality change.

Over a period of several years, straight arithmetic weighting of the CPI components was shifted to a geometric weighting which automatically gives a lower weighting to CPI components that are rising in price, and a higher weighting to those items dropping in price. Weighting works in conjunction with the substitution effect.

Hedonics is my personal favorite. Hedonics adjusts the prices of goods for the increased pleasure the consumer derives from modifications to those goods, e.g. if you pay more for gas because of federally mandated additives, the additional cost does not count toward the CPI because of your increased pleasure in breathing ‘cleaner air’.

A Hedonic Price Index for Airline Travel:

Re: Hedonics and Quality Adjustment - QUALITY ADJUSTMENT FOR GASOLINE

"A quality adjustment has been made to gasoline prices used in the January CPI to account for the effects of the mandated introduction of reformulated gasoline in selected areas of the United States. The gasoline index rose 0.4 percent in January, following seasonal adjustment. Without the quality adjustment, it is estimated that this index would have increased 1.1 percent. In those areas required to sell the reformulated gasoline, virtually all of the January price quotes were for reformulated gasoline."

From the 1999 Economic Report of the President: " reason for the slowing of reported price indexes has been methodological changes to both the CPI and the indexes used in the national income accounts ".

Intervention analysis is an enhancement to seasonal analysis; it tones down severe upswings.

John Williams welcomes questions at his web site.
44 posted on 03/28/2011 2:17:10 PM PDT by algernonpj (He who pays the piper . . .)
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To: Thunder90; no-to-illegals; Marine_Uncle; All

Yes, gasoline prices are a serious problem. Not only do they affect our travel, but also the cost of operating machinery to produce our food. The link below points out that the main cause of escalating gas prices is not shortage of supply, buy runaway ETFs. Companies like Goldman Sachs are pushing sales of these oil ETFs to everyone. The solution in the article, which I agree with, is to restrict large purchases of commodity futures like oil to actual users like airlines and fuel companies. NOW IS THE TIME TO LOBBY YOUR CONGRESSCRITTERS TO DO JUST THAT. With such a limitation, oil would drop way down and our economy would blossom.

http://www.dailyfinance.com/story/the-real-reason-gas-prices-are-soaring/19893347/?ncid=webmail


45 posted on 03/28/2011 2:18:17 PM PDT by gleeaikin
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To: gleeaikin

Just further verifies what a number of of have been saying for the past six months.


46 posted on 03/28/2011 2:21:09 PM PDT by Marine_Uncle (Honor must be earned....Duncan Hunter Sr. for POTUS.)
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To: Marine_Uncle; All

If after reading my link, you wish to contact your CONGRESSCRITTER, phone 202-224-3121 and ask for the Congressperson or Senator of your choice. If you don’t know who that is tell the operator where you live and they will identify the right rep for you. Also, if you have the name, you can Google and find contact information there.


47 posted on 03/28/2011 2:28:34 PM PDT by gleeaikin
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To: Free Vulcan

Both being retired, with gov SS pensions, IRA pension and military retired pension and no hope of pay raises on two of those, we have cut back about as far as we can. I think if I cut off the power, dump the water company, disconnect the phone, quit eating, quit paying my house payment and taxes, then we might break even this year. Otherwise, we are gonna have a few problems.


48 posted on 03/28/2011 2:30:16 PM PDT by RetiredArmy (The Lord Said It and I Believe it. Read your Bible. These are the end time events.)
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To: gleeaikin

Thanks. In my case all congressmen/women are socialist. I live in hard core Stalin land, Philly.


49 posted on 03/28/2011 2:45:58 PM PDT by Marine_Uncle (Honor must be earned....Duncan Hunter Sr. for POTUS.)
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To: gleeaikin
restrict large purchases of commodity futures like oil to actual users like airlines and fuel companies

Not sure this will work. Why not issue permits and allow drilling and mining of our resources? Speculators will dive out of the market in six months or less is my opinion, and when speculators jump out, price should also dive downward. I guess I am a fool for wanting to see Americans have jobs. Drilling and mining would create jobs....imo

50 posted on 03/28/2011 3:46:20 PM PDT by no-to-illegals (Please God, Bless and Protect Our Men and Women in Uniform with Victory. Amen.)
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