Tuesday, May 22, 2007

Cutting off your head to spite your face

I know, I'm a bit off on the title, but that was purposeful.

I just read this article

House approves bill to challenge OPEC

Snippet:
WASHINGTON - Decrying near-record high gasoline prices, the House voted Tuesday to allow the government to sue OPEC over oil production quotas.

The dollar is in serious shape and this is primarily so due to the reduction in energy exchanges(oil bourses) which take the US dollar.

We need to get used to energy suppliers like Exxon having record profits. They have us, we're completely subservient. However, it is very important that we not shake off those chains just yet. We need a backup plan for the dollar, such as the one Ron Paul is suggesting, before we bite the hand that feeds us. To kill what remains of the dollar now before an alternative is available would be WORSE than the great depression.

This is a perfect example of how important an understanding in geopolitics and macroeconomics is for members of the government. Confidence in the dollar is of utmost importance and is absolutely needed right now. I hate the fed as much as the next guy, but we need to be realistic.

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