Inflation

Urges Comprehensive Energy Solution to Combat Growing Costs

August 4, 2008 -- Washington, DC – Concerned about steep increases in commodity prices, on July 18th, Senators Jim Webb (D-VA) and John Warner (R-VA) sent a letter to the Environmental Protection Agency (EPA) in support of a temporary waiver of the federal ethanol mandate. This waiver is intended to help Virginia’s agricultural community, including poultry, dairy and livestock producers, and consumers who have been hit hard by a dramatic rise in feed costs as a result of increased usage of corn-based ethanol.    » read more »

23 June 2008 -- Top officials of the U.S. central bank are expected to hold interest rates steady when they gather at a key policymaking meeting Tuesday and Wednesday in Washington.

The U.S. Federal Reserve has cut interest rates several times recently to bolster economic growth that has been hurt by the faltering housing market, tight credit, and other problems.

But economists say cutting rates too low can spark inflation, which is a growing threat as oil prices soar to ever higher record levels.

Experts interviewed by news organizations, like Bloomberg and Reuters, say the Fed will probably keep interest rates unchanged for a while, but raise them later this year.

Source: VOA News

Sends Letter to FTC Chairman about potential price gouging

June 17, 2008 -- WASHINGTON, DC - At a time when Pennsylvanians are faced with skyrocketing gas prices, U.S. Senator Bob Casey (D-PA) today sent a letter to William Kovacic, Chairman of the Federal Trade Commission (FTC) regarding the potential of price gouging and price manipulation.

“I hope that you and I can work together to give the FTC the tools it needs to investigate and help prosecute companies that are adopting questionable business strategies,” Senator Casey wrote. “The Unites States Congress and the FTC have an obligation to provide consumers with the assurance that whatever price they are paying at the pump, they can be certain they aren't being taken for a ride.”    » read more »

June 17, 2008 -- “There are some who believe that the only solution to our skyrocketing energy crisis is to drill, drill, and drill. And one of their primary targets is the Outer Continental Shelf.

Congress chose to protect these federal waters from oil exploitation in 1981. And Congress has voted to renew that ban every year since then.

Offshore oil drilling rig: Photo by Beau Wade (CC)

But today, these federal protections are under attack.

Let me be clear: lifting the moratoria is a false promise and an unnecessary risk.    » read more »

Oil is fueling an economic resurgence in Kansas

16 June 2008 -- The world's largest oil exporter, Saudi Arabia, plans to increase its oil production by 200,000 barrels a day, to a total of 9.7 million barrels a day, in an effort to ease soaring world oil prices.

Oil-consuming nations have been pressing the Saudis to pump more oil for some time, but members of the Organization of Petroleum Exporting Countries say a shortage of crude oil is not the problem. OPEC says high prices are caused by the weak dollar, speculators and international political tensions.    » read more »

Threat of protectionism is on the rise and will hurt Asia and rest of the world

Kuala Lumpur, Malaysia 15 June 2008 – The prevailing global economic slowdown is fuelling the rise of protectionism in Western economies, noted Lord Levene, Chairman, Lloyd’s, United Kingdom. In a plenary discussion on global risks at the World Economic Forum on East Asia, he observed that there are worrying signs that politicians in Europe and US are prepared to put in place policies to shield their domestic industries.    » read more »

Government actions behind two-thirds of food price increase

Kuala Lumpur, Malaysia 16 June 2008 – Business leaders at the World Economic Forum on East Asia highlighted the role of government in food price increases, warning of mounting unrest and protectionism if urgent actions are not taken.    » read more »

Chicago, IL -- June 11, 2008 -- "Before we begin, I just wanted to say a word about the flooding devastating so many communities. We were scheduled to be holding this event in Iowa, but we decided to cancel it because we didn't want to divert state resources from going to help with flood relief.

Barack Obama poster, San Francisco: Photo by january20th2009 (CC)    » read more »

Increase “long overdue,” according to AFL-CIO President John Sweeney

June 09, 2008 -- Today AFL-CIO President John Sweeney urged members of Congress to aid working people hit the hardest and boost the our floundering economy by extending unemployment benefits.    » read more »

June 9, 2008 -- John McCain says he wants to cut taxes for middle class families. But the reality is Senator McCain would do even less for the middle class than President Bush, which is definitely not the change Americans are looking for.

McCain is masking a tax cut for the wealthy as a middle class tax break, saying that 100 million people have "something to do with capital gains." The truth is fewer than seven percent of families earning less than $100,000 received capital gains income in 2005. [CNN Live Feed, Town Hall (Charlotte, NC), 5/5/08; Center on Budget and Policy Priorities, 1/30/2006]    » read more »

June 8, 2008 -- Today on ABC's "This Week" Senator Lindsey Graham, saying that Senator Obama and Senator McCain have "two different views of how to grow the economy in a global world," made clear that John McCain would continue the same failed Bush Administration policies that have hurt our economy.

John McCain: Photo by T toes (CC)

In stark contrast, Senator Barack Obama has outlined plans to change the policies of the Bush Administration to get our economy back on track --specific plans that he'll talk about next week as he launches his two week economic swing - the "Change that Works for You Tour" Monday.    » read more »

Houston -- 10 June 2008 -- As oil prices continue to rise worldwide, economists fear widespread inflation well beyond the transportation sector. Chemicals derived from petroleum are found in many common products that are now becoming more expensive.

The price of just about everything is going up because the price of oil is going up. People around the world have already seen transportation and food prices rise dramatically. But now chemical companies are raising prices for a wide range of common products that are produced, at least in part, from oil or natural gas.    » read more »

June 2, 2008 -- With the summer harvest season right around the corner, and roadside produce stands popping up at country intersections across the state, the end of spring is a mouthwatering time to think about Michigan agriculture.

When, after months of delays, Congress recently passed the Food, Conservation and Energy Act of 2008, also known as the Farm Bill, the season was appropriate. This critical legislation – which was passed over a presidential veto – will offer a boost to the Michigan farmers who sell their produce locally and who send Michigan-grown agriculture across the country. The bill will also crack down on speculators who are driving high energy prices, and offer much-needed support for conservation, biofuels and nutrition programs.    » read more »

31 May 2008 -- India's economy grew by nine percent last year making it the world's fastest-growing major economy after China.

But the news is not all good. There are worries that high crude oil prices and runaway inflation will slow down growth.

A busy street in Bangalore, India: Photo by Matthew Logelin (CC)

India has pegged economic growth in the last fiscal year at a higher-than expected nine per cent. It is the third successive year that the economy has grown at this pace.    » read more »

May 29, 2008 -- AUGUSTA – Maine Governor John E. Baldacci released the following statement today after learning that Katahdin Paper Co. plans to indefinitely shutdown its mill in Millinocket.

“Record-high oil prices have put Katahdin Paper’s Millinocket mill in a difficult position. The mill is one of the few in Maine that relies almost entirely on oil to generate heat and steam for the paper-making process,” Governor Baldacci said. “My administration is fully engaged in an effort to see the mill re-opened. I believe the company’s energy problem can be solved.”

Governor Baldacci said that the rapid response team from the Department of Labor is ready to support workers affected by Katahdin’s decision.    » read more »