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War Abroad and Poverty at Home By Paul Craig Roberts
http://www.informationclearinghouse.info/article19977.htm
War Abroad and Poverty at Home
By Paul Craig Roberts
23/05/08 "ICH" -- - The US Senate has voted $165 billion to fund Bush’s wars of aggression against Afghanistan and Iraq through next spring.
As the US is broke and deep in debt, every one of the $165 billion dollars will have to be borrowed. American consumers are also broke and deep in debt. Their zero saving rate means every one of the $165 billion dollars will have to be borrowed from foreigners.
The “world’s only superpower” is so broke it can’t even finance its own wars.
Each additional dollar that the irresponsible Bush Regime has to solicit from foreigners puts more downward pressure on the dollar’s value. During the eight wasted and extravagant years of the Bush Regime, the once mighty US dollar has lost about 60% of its value against the euro.
The dollar has lost even more of its value against gold and oil.
Before Bush began his wars of aggression, oil was $25 a barrel. Today it is $130 a barrel. Some of this rise may result from run-away speculation in the futures market. However, the main cause is the eroding value of the dollar. Oil is real, and unlike paper dollars is limited in supply. With US massive trade and budget deficits, the outpouring of dollar obligations mounts, thus driving down the value of the dollar.
Each time the dollar price of oil rises, the US trade deficit rises, requiring more foreign financing of US energy use. Bush has managed to drive the US oil import bill up from $106 billion in 2006 to approximately $500 billion 18 months later--every dollar of which has to be financed by foreigners.
Continued . . .








Roberts says:
" If oil was the reason Bush invaded Iraq, the plan obviously backfired. Oil not merely doubled or tripled in price but quintupled."
No, it did not backfire, because it is not oil itself, but the revenue stream associated with it, that the Big Boys are after. If it was just oil, there's a plentiful supply on the open market, with a lot of willing sellers.
The current high oil prices are simply a monetary phenomenon, and have little to do with supply. Government no provides allows us to be provided with, currency of a sufficient quantity and stability needed to transact business. Government has, in fact, become a real threat to the well-being of its citizens. So what is one to do? (Disclaimer: this remark is not meant to inflame the passions of the listener.)