Friday, March 14, 2008

Bush-bashers live in the state of Denial

In this week's letters to the Madison Eagle, a Criglersville man claims that he predicted the decline of the dollar and President George W. Bush was behind the nefarious deed. He also claims that President Bush created the "War on Terror" in order to weaken the dollar. His main point is that the policies of President Bush have led to the increase in the price of oil and other imports.

Although the writer does acknowledge that there is an increasing demand for oil, he claims the price of oil increases because we import it. He neglects to mention that Saudi Arabia and the Gulf monarchies, Russia and Venezuela have a world-wide monopoly and stranglehold on petroleum supplies.

The world demand for oil is growing and will outstrip the current supply, which we do not control, within a decade, according to experts. Even if demand lessens, as long as the monopoly countries control supply, they can keep prices high.

There is plenty of information available on the internet concerning the declining dollar. It seems the majority of these authorities do not agree with the contorted notion that 'George Bush did it.' They point out that ups and downs in the dollar's value happen historically, which explains how it is predictable.

Some cite China as a major problem for their valuation of the Yuan. China has also reduced the amount of U.S. Treasury bonds they were purchasing with profits they made from goods sold in the U.S. which has led to a decrease in the demand for the dollar, according to Business Today.

Other factors are that Americans are spending and borrowing too much; low interest rates have made America less attractive for foreign savers, and interest rates have been cut further because of the housing slowdown while interest rates on the Euro have risen.

The trade deficit is not helping the dollar but Richard Pettinger, an economics teacher at Oxford, contends that the lack of action by the U.S. Government to shore up the dollar's value is due to the fact that the decline is providing an economic boost through increasing exports, and helping to reduce the deficit. The downside is the chance of inflation but the President is urging caution instead of the popular mantra of 'do something, even if it's the wrong thing.'

The rising prices consumers are seeing in stores today seem largely due to Congresses' misguided jump down the ethanol rabbit hole. This is joyful news to the drive-by media who have been salivating for any signs of an economic downturn since we recovered from 9/11. They have worked consistently to convince Americans that times are bad, very bad indeed.

It is disingenuous, at best, to pretend that our President can wave a magic wand and control world currency rates and world petroleum supplies. To deny that Congress supported the "War on Terror" also flies in the face of reality.

Of course, the denial of reality has never been much of a problem for Bush-bashers.