The prices are being calculated using past numbers for increases due to changes in fuel blends required by the Federal Government that normally force increases due to shortages during the winter summer blend change over at the same time people begin to drive more in better weather.
At the present time when prices should be at their lowest for the year the national average for a gallon of gasoline we are now paying over $3.55 per gallon.
Last year (2011) the month of May saw the highest national average cost of over $4 per gallon.
Prior to that you have to go back to 2008 when prices were that high however since President Obama took office the price of Gasoline has on average been over $1.50 higher then the past 10 year average and $2.00 higher then prices prior to the previous administration.
In all honesty we must include the fact that a war was beginning in the Middle East in Iraq when the previous administration saw gas prices increase.. however this time around price increases are due to mismanagement of the federal reserve, overspending and continued losses of good paying jobs.
Although the housing market and providing loans to persons that defaulted is the cause for inflation the reason for that default lays squarely in the lap of the current administration because they forced lenders to enter into minority loans resulting in 1.2 million loans that were defaulted on by the lendee.
Basically there was no reason for the defaults if people were honest with their income levels when they applied for loans
Loan defaults by minorities is not a secret and Congress woman Maxine Waters and Congressman Barney Frank have publicly admitted their fostering of what Waters described as loans to “Geographically Targeted Minorities” to allow persons living in Cities to move into suburban areas.
However the effect is not only lower home values but higher prices for commodities like gasoline and food.
President Obama has now introduced the possibility of write-downs of millions of mortgages by the Federal Government which will cost the tax payer hundreds of billions .. possibly trillions of dollars over the next 4 years.
Basically he is giving homes away to a number of people who intentionally applied for loans and lied about their income.
This at a time where the Federal Housing Administration is expected to run out of money over the next year and require a $700 million cash infusion from the Treasury Department to stay afloat, according to the Obama administration’s budget request sent Monday to Congress.
To which President Obama says that a Billion dollars will be given from his new tax on Banks to keep the lending agencies afloat.
It is getting very serious out there people I suggest that you prepare yourself financially and do not extend yourself.
If you can pay your loans off then pay them with every last dollar you can because if you own your home your lender can not take it if they go bankrupt. And when your bank goes bankrupt your new lender will call your loan and not give you leeway on any past problems.
If you make a good wage over $50,000 a year I suggest you cut back as much as you can in every way.. sell your car for a cheaper one.. don’t put money in your 401k or in the bank for the next couple years and cut out all of the niceties in your life and put every dollar you earn into paying off your home.. that way you will have a place to live. If you make less then do your best.
If you do not feel you can pay off your debt in total then prepare a nest egg so you can continue payments for at least a year without depending on your income. Although it is not being talked about there are a large number of Mass Layoff filings by large companies that are resulting in thousands of retail and other businesses closing their doors.
Normally the effect from that takes about 3 to 6 months while people try to find work and then find out that Unemployment is not enough to cover all of their costs.
Consider this the last time gasoline prices went through the roof and inflation started we saw dramatic changes in our homes… if it didn’t effect you previously you can expect it will this time around.