The Wall Street Journal is facing a real conflict of interest. Its news reporting is among the best and is considered even and balanced. Its editorial page makes the leaning tower of Pisa look like the Eiffel Tower, and to be clear the lean is towards a biased right agenda. Now what are they going to report about our failed CEO, President George W Bush? Will they spin and obfuscate or will they disown and dump him overboard in favor of saving the election for John McCain?
1. In today’s WSJ, front page and center, is a report on the price of oil and the value of the dollar versus the Euro (you know the currency that old Europe uses). As our dollar has deteriorated in value, the price of oil has zoomed up.
- So asking the Saudis to pump more oil is just a White House smoke screen. The supply of oil is not the issue, it is the value of the dollar which now too many people think is worth less.
- So claiming that the Chinese are using too much oil and driving up the price is a deception, it is the perceived lower value of the dollar. (Note finding someone to blame and hate is a staple of the Republican Bush Administration.
2. Also reported today is that the Federal Reserve Chairman Ben Bernake thinks the economy will recover later in 2008 and that further interest rate cuts do not pose too much of a fear of stimulating inflation.
- With the dollar falling, all the goods made from all those jobs shipped overseas as well as all the other things that Americans consume made overseas, will simply cost more. Same things, cost more, that is the definition of inflation.
- With the price of oil rising (even if only on the basis of a weakening dollar), it will drive up the cost of everything we do in America. They call that inflation.
- With the availability of cheap dollars, this time due to low interest rates, prices will escalate as more dollars chase fewer goods. This is also called inflation.
3. The Iraq War without end is costing us all a small but measurable fortune. And the bargain in this deal is that the American public gets little or nothing from it.
- In financial terms, the Bush Administration has gotten out its VISA card and charged the whole event. This free lunch is now costing Americans each year about $ 30 billion in interest just to carry the $ 600 billion of debt. (This $ 600 billion grows each day and is expected to top $ 1 trillion soon.
- In financial terms, the Bush Administration’s budgeted Defense spending is over $ 500 billion yearly. With the overall national budget also running a deficit, this in effect means part of our Defense spending is also on the tab. Why should other nations support this reckless and irresponsible financial behavior?
If the US Government were a corporation, they would be put it in receivership. If President George W Bush were the CEO, he would be fired. Will the WSJ write this? Will the WSJ offer some answers to these perplexing problems? And even more important, will any of the candidates speak to this serious issue with clarity and a plan?