Generating a new keypair through GnuPG 2.x in Ubuntu 16.0.4

[vedaal at nym.hush.com]

I recently got a new laptop, and installed Ubuntu 16.0.4 LTS and used
the Ubuntu Software to install Kleopatra.
Ubuntu 16.0.4 has GnuPG 1.4.20 installed by default.

After installation, I tried to generate a keypair and could not.
Here is what happened:

=====[begin quoted terminal]=====

 p { margin-bottom: 0.1in; line-height: 120%; } 

	londo at londo-earth-trinket:~$ gpg2 --gen-key 

	gpg (GnuPG) 2.1.11; Copyright (C) 2016 Free Software Foundation, Inc.


	This is free software: you are free to change and redistribute it. 

	There is NO WARRANTY, to the extent permitted by law. 
	Note: Use "gpg2 --full-gen-key" for a full featured key generation
dialog. 
	GnuPG needs to construct a user ID to identify your key. 
	Real name: kleo sixteenOfour 

	Email address: kleo at test.key 

	You selected this USER-ID: 

	    "kleo sixteenOfour " 
	Change (N)ame, (E)mail, or (O)kay/(Q)uit? o 

	We need to generate a lot of random bytes. It is a good idea to
perform 

	some other action (type on the keyboard, move the mouse, utilize the 

	disks) during the prime generation; this gives the random number 

	generator a better chance to gain enough entropy. 

	gpg: agent_genkey failed: Not supported 

	Key generation failed: Not supported
	londo at londo-earth-trinket:~$ gpg2 --full-gen-key 

	gpg (GnuPG) 2.1.11; Copyright (C) 2016 Free Software Foundation, Inc.


	This is free software: you are free to change and redistribute it. 

	There is NO WARRANTY, to the extent permitted by law. 
	Please select what kind of key you want: 

	   (1) RSA and RSA (default) 

	   (2) DSA and Elgamal 

	   (3) DSA (sign only) 

	   (4) RSA (sign only) 

	Your selection? 1 

	RSA keys may be between 1024 and 4096 bits long. 

	What keysize do you want? (2048)   

	Requested keysize is 2048 bits 

	Please specify how long the key should be valid. 

	         0 = key does not expire 

	        = key expires in n days 

	      w = key expires in n weeks 

	      m = key expires in n months 

	      y = key expires in n years 

	Key is valid for? (0)   

	Key does not expire at all 

	Is this correct? (y/N) y 
	GnuPG needs to construct a user ID to identify your key. 
	Real name: kleo sixteenOfour 

	Email address: kleo at test.key 

	Comment: local keysigning only 

	You selected this USER-ID: 

	    "kleo sixteenOfour (local keysigning only) " 
	Change (N)ame, (C)omment, (E)mail or (O)kay/(Q)uit? o 

	We need to generate a lot of random bytes. It is a good idea to
perform 

	some other action (type on the keyboard, move the mouse, utilize the 

	disks) during the prime generation; this gives the random number 

	generator a better chance to gain enough entropy. 

	gpg: agent_genkey failed: Not supported 

	Key generation failed: Not supported 

	londo at londo-earth-trinket:~$ 
	=====[end quoted terminal]=====
	What am I forgetting/doing wrong?
	TIA

	vedaal
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