United States Economy in Freefall

Oil prices have exceeded $88 per barrel on the open market since Federal Reserve Chairman Ben Bernanke announced his plan to invest an extra $600 billion dollars buying back long term treasury bonds. The world has reacted negatively warning the United States this is a careless and dangerous move. President Obama says he supports the decision. I’m no expert on the economy or market but I understand a devalued dollar will increase the cost of commodities (including oil) which will increase the cost of doing business. This cost will always be passed on to the consumer and the result will be hyper-inflation.

The so-called experts tell me the increased oil prices are due for the most part to a sudden drop in inventories and increased production by emerging countries like China. I have news for the experts, China emerged a long time ago. They are the leading exporter of products sold to many countries around the world and have been for years. The experts seem to always have an excuse when oil prices rise and the excuses always go back to supply and demand. I find this hard to believe. I believe it has more to do with politics, countries, or people (George Soros comes to mind) that are willing to use it as a strategical weapon in order to gain control of the global market.

Wolfgang Schaeuble, Germany’s Finance Minister, on the eve of the G-20 summit with President Obama said, “With all due respect, U.S. policy is clueless.” I totally disagree. President Obama knows exactly what he is doing. It all comes back to his relentless desire of transforming America to his dream of a Progressive Utopia. Unfortunately for America and the world this mythical land of Utopia is based on a failed European Socialist experiment. In the mind of President Obama, George Soros and Progressives in America the only reason Socialism failed in Europe was because the leaders in Europe failed in its implementation. They believe if they can advance their One World Order dream from a theory to reality, the world can become that mythical Utopia we read about in children’s books.

Using the dollar to try to advance the Soros dream is dangerous to America and the world. As the German Finance Minster points out, many countries are already considering dropping the dollar as the world’s reserve currency. If this should happen the dollar would depreciate to levels that could reduce American status in the world to that of a third world economy. With every country competing to replace the dollar and strengthen their position in the global market, global chaos could be the result. Hyper inflation will definitely hit not only America but the rest of the world. We are seeing a small example of this with the announcement by Mr. Bernanke. Right after he made his decision public, the market reacted and the price of oil started to climb. With President Obama heading for the G-20 summit one has to wonder why Mr. Bernanke picked this time to make his decision public. He is not a stupid man and he does have the President’s ear. Surely he knew how the market and other nations would react.