Economic threat is the ultimate IED

The Mid America Progressive checks into comments and points us to this excellent op-ed by economist Paul Craig Roberts. He sees the winners and losers of our Middle East policy.

The Iraqi war has three beneficiaries: (1) al Qaeda, (2) Iran and (3) US war industries and Bush-Cheney cronies who receive no-bid contracts.

AQ gets prestige, Iran gains allies and the crony capitialists line their coffers with our tax dollars. The GOP loses touch with its base, the Dems lose their relevance and the US loses it's standing as a superpower. But that's not the worst of it. Roberts sees the real danger to US security and it's not in Iraq.

The budget deficit is being financed by foreigners, primarily Asians who now hold enough US government debt to exercise power over US interest rates and the value of the dollar whenever they decide to use the power that Bush has placed in their hands.

The trade deficit is being financed by turning over the ownership of US assets and future income streams to foreigners, making Americans forever poorer from the loss of accumulated wealth.

For the time being, it fits China's plan of taking over our economic capabilities to continue to support our dollar, but once they have fulfilled their interests, they will no longer do so and we may never recover from the results. As Roberts says,

When the dollar goes, it will affect costs, profits, interest rates and living standards in dramatic ways. Costs and interest rates will soar, and profits, living standards, equity values, bond prices and real estate will plummet.

Global labor arbitrage is rapidly dismantling the ladders of upward mobility and thereby endangering American political stability. This threat is far greater than any Osama bin Laden can mount.

As Roberts notes, we need an intelligent government to address these dangers before it's too late. Unfortunately we don't have one. Thanks to electronic voting machines and unverified voting, what we got was a bunch of thugs and ideologues.

I hear Bill Maher has been calling for a nationwide recall vote. I think he may be right but this time let's insist on a paper ballot.