PARADE OF GRIMNESS – AT 9:04 A.M. ET:  New unemployment claim figures are just out.  They are not good.  And that ain't all.  From CNBC:

Applications for unemployment benefits continued to rise in the past week, while inflation pushed higher and a key manufacturing index weakened.

The weekly jobless claims number, which is closely watched as an indicator for employment trends, unexpectedly rose 11,000 to 428,000, well ahead of estimates of 411,000.

The consumer price index, meanwhile, gained 0.4 percent when including volatile food and energy prices, after an increase of 0.5 percent in July. The so-called core CPI, though, gained 0.2 percent, which was in line with expectations.

Consumers paid more for a range of goods and services last month, pushing up inflation and squeezing Americans' purchasing power.

For the 12 months ending in August, the core index surged 2 percent, the biggest year-over-year increase in nearly three years. That's at the top end of the Federal Reserve's informal inflation target. It could limit the central bank's ability to take further steps to try to revive the economy.

Food prices rose 0.5 percent, the biggest increase since March. That was due to higher prices for cereals and dairy products. Energy costs increased 1.2 percent.

COMMENT:  My favorite dark chocolate bar (Hershey's) just went from a buck to $1.09.  I am considering an austerity program. 

These are serious figures.  I can't see how they can be turned around to any great degree within the next year.  They may even get worse. 

But remember the emerging Democratic strategy:  "We may be bad, but the alternative is worse."  And it can be effective, especially when filtered through a press that still has a powerful investment in Barack Obama.  We must fight as if we're 20 points behind.

September 15, 2011