Secretary Paulson - Just Lip Service on "Strong Dollar" Policy

Treasury Secretary Paulson talks about a "strong dollar" policy but that is nothing more than lip service. Instead, there has been what appears to be purposeful debasement of the US dollar on the misguided idea that it will increase exports. The unwanted side effect is that few jobs are created while everyone pays through the nose in higher import prices and gasoline.

Misguided Policies

Part of the rise in oil prices is due to the falling dollar, but that is not the only factor. Another part of the equation is geopolitics, and a third factor is misguided policies on ethanol. At the top of the list in poor policy decisions is our attempt to be the world's policeman. We can no longer afford that luxury.

Congress spends money it does not have on all kinds of silly programs. Both parties go along with it...

The Big Lie?

Let's now take another look at MC's statement "I was born into a country that emphasized hard work, loyalty, stability, and 'if you get educated and skilled, work hard, work smart, and behave yourself, you will do all right.' I no longer believe that lie."

For the US to remain competitive wages must come down and spending must come down. Like it or not, those are simply the facts. If that doesn't happen, we are going to see more bankruptcies at the personal, corporate, city, and perhaps even state level. California itself is a prime bankruptcy candidate in my opinion. But less services means fewer jobs or lower wages. Otherwise taxes have to rise or the US dollar will continue to sink.

We are in this mess because we tried to spend our way to prosperity. In addition, too many people have houses, SUVs, boats and other toys they cannot afford, all egged on by "the ownership society" and other misguided policies.

Living Wage

One repeatedly hears the phrase "we need a living wage".

And instead of addressing real problems, Congress is looking into commodities speculation and threatening the oil producers. See Commodities Speculation Symptom Of Larger Problem and Congressional Insanity: Sue OPEC over Oil Prices.

Inquiring minds may also wish to consider Bankruptcy Reform Act Finally Blows Sky High.