Top Dem Strategist: Soaring Prices Will Sink Obama in 2012


President Barack Obama’s re-election chances are imperiled by the combination of rising food and gas prices, Democratic political analyst Doug Schoen tells Newsmax.TV.

Regarding another volatile issue, Schoen said the public opinion battle over collective-bargaining rights in Wisconsin is in a stalemate but could break for Republicans.

“The combination of rising food and gas prices could pose grave peril to President Obama’s re-election,” Schoen said in an exclusive Newsmax.TV interview. “Not only would it be inflationary, it literally hits people where they live. And we saw with Jimmy Carter in the late ’70s the impact of stagflation. If we had a period of stagnant economic growth, inflation and potentially increasing interest rates it could be particularly perilous for our president.”

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That could turn price gouging into profitable political strategy, couldn’t it?

I hope something sinks him.

If gas is $4 a gallon, stick a fork in him. His worst fear? Having $4 a gallon gas. His goal? Having $8 a gallon gas.

(Reuters) – Sales of previously owned U.S. homes plunged in February and prices hit their lowest level in nearly nine years, implying a housing market recovery was still a long way off. The National Association of Realtors said on Monday sales fell 9.6 percent month over month to an annual rate of 4.88 million units, snapping three straight months of gains. The percentage decline was the largest since July.

Meanwhile, from MarketWatch:

The Treasury Department said Monday that it will begin to sell its portfolio of $142 billion in agency-guaranteed mortgage-backed securities. A senior Treasury official said the department plans to sell up to $10 billion in MBS per month subject to market conditions. The sales could generate a profit for taxpayers of about $15-$20 billion as market conditions have improved, the official said. Congress gave Treasury the power to purchase the securities guaranteed by Fannie Mae and Freddie Mac to provide stability to financial markets during the financial crisis of 2008. The official said the sales were not related to the looming debt ceiling.

This must be part of a “buy high, sell low” strategy.