At this point in time the devaluation of the American dollar is a warning sign of an impending economic crash that is kept at bay simply by the ability of the Federal Reserve Bank to keep interest rates low. Yet in a day and age when illegal immigration is taking work away from American laborers while big business is exporting customer service work to other continents, thus affecting the lower middle classes, a reckoning is imminent.
Gas prices have gone up and of course the price of oil is one ever economist’s watch list. While it is easy to blame terrorists, the war, and other factors for this shortage, the facts reveal that compared to the 1980s the price of oil is actually quite low. While in a last ditch effort OPEC is increasing the output, the very real threat that American is facing is the forsaking of the American dollar in favor of the European Euro when denominating oil sales.
As if the danger to the economy brought on by oil was not enough, the war in Iraq is quickly threatening to topple America’s precarious economic advantage. Ron Paul is the only anti-war Republican in the 2008 presidential race. Questionable friends, such as China, are beginning to realize the severity of America’s position and thus the threats are being made to no longer solely invest in dollar holdings. Combine this with an increased need to police powder keg countries, and the economic collapse is closer than you think. While there is very little America can do at this time to reverse these trends, the question arises whether the artificial hiding of these facts from the public are indeed beneficial to the survival of the country as a whole. We cannot even fund our libraries.
The Iraq War has become burdensome for the American economy and will cause an economic crash if we are not careful. Ron Paul's philosophical and free market approach to economics could help America.
