Sunday, July 27, 2008

The Falling Dollar

The falling dollar is increasing costs everywhere. We first saw its effect as the price of oil increased. The question is how do we restore our economy? First, we need to look at what caused this problem to begin with. The root cause is that we send more dollars abroad than we bring back in. There are several sources of dollars leaving the country;

Budget Deficits – Our elected representatives have spent more money they we paid in general revenue taxes since 1959. Last year the deficit was over $700 billion. Where did our Elected Representatives get the money, they borrowed it from abroad. Now many will disagree with the $700 billion. The problem is our Elected Representatives like to use the Unified Budget accounting gimmick. This combines the Medicare and Social Security budgets and dedicated revenues in with the General Budget and General Revenue streams which reduces the reported deficit.

Trade Deficits – We the people buy more from overseas then they buy from us. This has been going on for decades. Most favored trade status to China did not help at all.

Illegal Immigrants – This group takes jobs from Americans and in turn sends US Dollars out of the country to help their families.

Oil Importation – At $125 barrel, we send nearly $700 Billion out of the country. This is the primary reason behind our Trade Deficit.

How do we restore the value of the US Dollar?

We limit our importation of oil by replacing those things that consume oil with other energy options and by drilling here at home. By bringing US oil on line we reduce the dollar going out by $125 for each barrel. We will not be able to eliminate importing oil, but we can greatly reduce the trade deficit. We replace those energy conversion systems that currently use oil with alternative conversion methods. T. Bone Pickens has a great plant to use Wind Power to replace those utilities that currently use natural gas to make electricity. We free up natural gas to power our cars and trucks.

We close our boarders to illegal’s and begin sending those who are in our country illegally back from which they came. This will reduce the number of dollars being sent out of the country.

We elect an entire new congress. Those who now represent us have not focused on the problems and in many cases made the situation worse.

On November 4, 2008 we can begin the needed change in Congress.

1 Comments:

At 9:16 AM, Blogger Bobby G. said...

Bill:
You nailed that one perfectly.
that damn trade deficit WILL be the "death" of us yet.
Someday, someone will realize that CHEAPER isn't always BETTER (for everyone concerned).

And Pickens has some damn good ideas...that SHOULD have been implimented back (when wre got our FIRST "wake up" call) in the 1970s!

Good post.

B.G.

 

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