Oil passes $98, dollar hits new low around the world

The Fed will again have to balance their desire to lower interest rates to help promote buying against the global pressure on the dollar. Realistically the US can't have it both ways but this won't stop Bernanke from trying to please everyone. The lower the rates, the lower the return from investors who will also view cuts as a lack of faith in the economy. Lower faith in the economy leads to investors searching for better markets which leads to a softening dollar. The softening dollar is linked to oil prices heading north and higher energy prices pushes up inflation concerns. (The dollar index against six leading global currencies hit a 34 year low.) In short, our options all stink.

The Bush administration, Mr Bubble and Wall Street Big Finance didn't create this deep and tangled economic problem overnight and it's not going to be solved overnight. When you hear two of the richest, most successful American investors (Buffet and Soros) talk about the problems with the US economy (and put their money where their mouth is) there is good reason to be concerned. Now is not the time to listen to Bush and the GOP talk about how superior they are with fiscal responsibility. Now is the time to shove this collection of problems back in their face and tell them to step aside. It's quite simple...they trashed the US economy.