Nobody Understands Debt

In 2011, as in 2010, America was in a technical recovery but continued to suffer from disastrously high unemployment. And through most of 2011, as in 2010, almost all the conversation in Washington was about something else: the allegedly urgent issue of reducing the budget deficit.
This misplaced focus said a lot about our political culture, in particular about how disconnected Congress is from the suffering of ordinary Americans. But it also revealed something else: when people in D.C. talk about deficits and debt, by and large they have no idea what they’re talking about — and the people who talk the most understand the least. Read more at Link below
http://www.nytimes.com/2012/01/02/opinion/krugman-nobody-understands-debt.html?_r=1

Happy New Year!

Pelosi's $10,000-a-Night Vacation

President Barack Obama is not the only VIP to be spending his holidays in exclusive islands in Hawaii. 

While the president and his family are on a 17-day holiday vacation in beach front homes in Kailua, Oahu, House Minority Leader Nancy Pelosi is spending her Christmas at the exotic Four Seasons Resort Hualalai at Historic Ka'upulehu in Kona, reports the Hawaii Reporter.The California Democrat's suite, which she has rented for the past two Christmases, goes for a whopping $10,000 a night. Pelosi has been escorted by local police during her two visits, at a cost of $34,000 to local taxpayers, the Reporter says.

Bailey: It takes the average working American almost three and a half months to make ten thousand dollars.

Pelosi has many friends in Hawaii, including Hawaii Gov. Neil Abercrombie, whom she supported during his successful campaign for governor in 2010. 

Obama’s trip to the island of Oahu is much higher. Last week, the Reporter added up the total cost of his vacation to be more than $4 million.

Read more on Newsmax.com: Pelosi's $10,000-a-Night Vacation
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Merry Christmas !

Despite surplus gasoline, fuel prices increase

Fuel prices continue to rise, even though America has more gasoline and diesel fuel than it can use. CBS News' Bill Whitaker explains why.

L.A. small businessman Peter Adeli had a good idea: keep shipping costs down by loading many small shipments under one big truck. But now he's being hit not by the recession, but high fuel costs. His trucks run on diesel.

"It costs about $160 to fill up the tanks in 2009," he said. "Now in 2011, it's costing over $350 to fill up the tanks on one truckload."

He can't afford to hire more workers and expand his business. This year the average American household will spend a record $4,155 on gasoline. Adeli says he'll spend about $98,000 on fuel.

"I can't understand why the prices increased so much," he said, "even though the national economy and business overall have not picked up."

Yet for the first time in 62 years, the U.S. will export more refined petroleum products -- gasoline and diesel -- than it imports.

"It's preposterous," said Adeli. "It's ridiculous."

In the first nine months of this year, the U.S. exported a net 64 million barrels of gas and diesel -- enough to run America's engines for a week. With the U.S. economy in the doldrums, we're using less fuel. Gasoline, and especially diesel from American refineries, is following demand -- flowing to growing economies in Central and South America.

Tom Kloza is chief oil analyst for the Oil Price Information Service.

"Right now across the globe, it's the product that refiners can make the most money on, and it's the product that's in the most demand in emerging economies," he said.

"Those exports should be staying here in America, keeping our prices low," Adeli argued.

It's unlikely to get better for Adeli in 2012. Gasoline and diesel are expected to stay above $3 a gallon.

More at Link below:

http://www.cbsnews.com/8301-18563_162-57346678/despite-surplus-gasoline-fuel-prices-increase/