yes but didn't you hear that, by official measure, """ unemployment is down this month """ ?
If you check out the fine print, you'll find that the amount of new unemployment claims filed this week was lower than experts expected. The facts remain that
A. unemployment is now at a 23 year record high ... 9 percent by 'official' measure
B. total unemployment, which includes discouraged workers, underemployed workers, part time workers wishing that they were full time etc. , is approaching 16%
http://apnews.myway.com/article/20090605/D98KFDRO0.html
The rise in the US dollar denominated oil price is actually exceptional, since oil demand traditionally drops immediately after Memorial Day driving season begins. Again if one checks the 'fine print', the price of oil is NOT significantly higher in terms of Euros, Yen etc. Thus in reality it's not a case of oil becoming more 'expensive', it's a case of the US dollar losing purchasing power. This is arguably the direct result of Obama / Geithner 'quantitative easing' policy i.e. printing up brand new US dollars to indirectly purchase freshly printed Treasury bonds which must be sold to provide the necessary cash to finance Obama's stimulus package ( new US treasury bonds which traditional european / japanese / chinese bond buyers are now shying away from ).
The same loss of US dollar 'purchasing power' is arguably causing US dollar denominated futures price increases for all sorts of global commodities ... from wheat to copper to steel. These commodities are 'inputs' to all sorts of food products, consumer products and durable goods. Thus the crystal ball gazers point out that, with the futures time lag, America is very likely to face not only higher fuel oil / gasoline / energy prices in the near future, but also higher prices for foods and consumer products of all kinds by the end of the year.
The 'bright' side of a US dollar losing purchasing power is that it makes US exporters more competitive in terms of sales to international customers. The 'dim' side of the US dollar losing purchasing power is that it makes global commodity based domestic products and all imported products more expensive for US customers.
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