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Get Ready for Obama’s Impending Economic Free Fall
Unbeknownst to most Americans and despite the fact that inflation at the grocery store and at the gas pump is beginning to take its toll, the simple fact that the dollar is the global reserve currency has protected U.S. citizens from the kind of commodity price increases that set off the Arab Spring in Tunisia. But things are beginning to change rapidly. Iran is moving ahead with its plan to trade oil in other currencies besides the dollar on March 20, 2013:
Last week, the Tehran Times noted that the Iranian oil bourse will start trading oil in currencies other than the dollar from March 20. This long-planned move is part of President Mahmoud Ahmadinejad’s vision of economic war with the west.
“The dispute over Iran’s nuclear programme is nothing more than a convenient excuse for the US to use threats to protect the ‘reserve currency’ status of the dollar,” the newspaper, which calls itself the voice of the Islamic Revolution, said.
“Recall that Saddam [Hussein] announced Iraq would no longer accept dollars for oil purchases in November 2000 and the US-Anglo invasion occurred in March 2003,” the Times continued. “Similarly, Iran opened its oil bourse in 2008, so it is a credit to Iranian negotiating ability that the ‘crisis’ has not come to a head long before now.”
Iran has the third-largest oil reserves in the world and pricing oil in currencies other than dollars is a provocative move aimed at Washington. If Iran switches to the non-dollar terms for its oil payments, there could be a new oil price that would be denominated in euro, yen or even the yuan or rupee.
India is already in talks with Iran over how it can pay for its oil in rupees.
The dollar’s position as the global reserve currency has been under attack for several years now. A sampling of recent articles on the subject point to the ramifications of a shift in the dollar’s status:
- Why the Dollar’s Reign Is Near an End
- The dollar’s days as reserve currency are numbered
- The Curse of the Reserve Currency
I have focused attention of this crucial issue for a couple of years. Two SnyderTalk commentaries address it specifically:
- The U.S. dollar is under siege and for good reasons.
- What are commodities, and what do commodity prices tell us?
What does this economic gobbledygook mean for average Americans? This is the simple answer: you can expect inflation to skyrocket at some point in the near future and with it will come a rapid decline in our nation’s ability to influence global political events. The root cause is misguided U.S. policies, and since policies are a function of people, in this case that means President Obama is to blame. He has had four years to right the ship of state, but he has failed the test.
As the dollar loses the protection provided by its global reserve currency status and countries are no longer required to stockpile dollars for oil trades, the dollar will rise or fall in value based on the strength of the U.S. economy. So will interests rates and inflation. Unfortunately, with deficit spending looming for as far as the eye can see and our debt burden growing more ominous every day, that doesn’t bode well for the dollar’s ability to compete on an even playing field.
Our government officials in Washington should have dealt with our debt and deficit problems before our economic situation deteriorated to a crisis point, but they didn’t and calamity is just around the corner. For example, our penchant for routinely spending more than we collect in tax revenue, subsidizing able bodied men and women who contribute virtually nothing to our economy, paying the bills of illegal aliens who should not even be in our country, and ignoring our burgeoning debt problem because interest rates are at historically low levels have the effect of weakening our economy at a time when we should be doing everything that is humanly possible to shore it up.
It’s obvious that President Obama is incapable of dealing with the serious problems that we face. His first term in office provided all of the evidence we needed to prove that he is an ideologue who is willing to do just about anything to advance his political agenda even if it means that the American people have to suffer needlessly.
Regrettably, President Obama was re-elected before the consequences of his dismal first term performance became obvious to average Americans, but the day is rapidly approaching when they will feel the effects of his ineptitude in dramatic ways. From energy policy to foreign policy to environmental policy to fiscal policy to social policy, Obama has set our nation on a collision course with reality.
Economic principles don’t change because an ideologue is in the Oval Office. History teaches that the laws governing how economies work prevail in the long-run and that nations ignoring them pay the price. Even so, President Obama is a master at the art of misdirection and he is a world-class dissembler and placer of blame. That’s why died-in-the-wool Obama supporters may never understand the truth. Hopefully, that doesn’t include most Americans, but given the results of the 2012 presidential election, I fear that it might.
Despite what the president may say when the Day of Reckoning finally arrives, he is ultimately responsible for what is likely to take place. I can’t predict exactly when it will happen and I can’t tell you how quickly the effects of his policies will devastate our economy when it’s time to pay the fiddler, but I can say this: the U.S. economy is floundering at this pivotal moment and it’s Obama’s fault. Keep these things in mind as we move to the current crisis point — sequestration, and rest assured that others will follow, probably in rapid succession. Buckle your seatbelts because we don’t have four more years to fritter away.
This SnyderTalk editorial first appeared in American Thinker.
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Ezekiel 48: 21-22
“The remainder shall be for the prince, on the one side and on the other of the holy allotment and of the property of the city; in front of the 25,000cubits of the allotment toward the east border and westward in front of the 25,000 toward the west border, alongside the portions, it shall be for the prince. And the holy allotment and the sanctuary of the house shall be in the middle of it. Exclusive of the property of the Levites and the property of the city, which are in the middle of that which belongs to the prince, everything between the border of Judah and the border of Benjamin shall be for the prince.”
- God also said to Moses, “Say to the Israelites, ‘Yahweh, the God of your fathers—the God of Abraham, the God of Isaac and the God of Jacob—has sent me to you.’ This [Yahweh] is my name forever, the name by which I am to be remembered from generation to generation.” (Exodus 3: 15)
- “Therefore behold, I am going to make them know—this time I will make them know My power and My might; and they shall know that My name is Yahweh.” (Jeremiah 16: 21)
- “Behold, the days are coming,” declares Yahweh, “when I will raise up for David a righteous Branch; and He will reign as king and act wisely and do justice and righteousness in the land. In His days Judah will be saved, and Israel will dwell securely; and this is His name by which He will be called, ‘Yahweh our righteousness.’” (Jeremiah 23: 5-6)
- Yeshua said to them, “Truly, truly, I say to you, before Abraham was born, I am.” (John 8: 58)
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Hosea 4: 6
My people are destroyed for lack of knowledge.
Israel Hayom Staff: Palestinians warn Obama over Temple Mount visit—Palestinian political and religious figures over the weekend warned US President Barack Obama that he should probably avoid ascending Jerusalem’s Temple Mount during his upcoming visit to Israel, but provided a list of instructions should he go ahead with a stop at the contentious holy site.
Prof. Ron Breiman: Who’s encouraging a ‘third intifada’?— Why does the Israeli media use the Arabic term “intifada,” and why does it interview our enemy’s representatives?
Ruthie Blum: The Jaradat Intifada— The death of a Palestinian man in Israeli custody is providing Palestinian Authority President Mahmoud Abbas with exactly what he wants: to reap the benefits of a mass uprising without having to lead one.
Elliott Abrams: Kerry and the ‘peace process’— There must be something in the water at the State Department.
Yoel Meltzer: Preparing for the fall of Jordan— As the bloodshed in Syria continues with no end in sight, more and more eyes are beginning to focus on Syria’s formerly stable southern neighbor, Jordan. After nearly two years of low level protests, the last few months have witnessed not only an upsurge in the amount of protests but also a significant change in the makeup of the protesters themselves.
Dovid Katz: Purim in Lithuania? A Season for State-Approved Neo-Nazi City-Center Marches— Here in Lithuania, as in the other countries on ground zero of the Holocaust, where just tiny remnant Jewish communities remain in a few cities, and hundreds upon hundreds of towns and villages are wholly without a single Jewish inhabitant, it is remarkable that the Holocaust itself has become the focus of a posh new brand of antisemitism.
Michael Curtis: Hezb’allah is a Terrorist Organization—Despite a blatant and deadly terrorist attack in Bulgaria, the European Union refuses to denounce Hezb’allah as an active terrorist organization.
Seth Mandel: Why the Syrian Rebels Don’t Trust Kerry—In January, as the Syrian civil war closed in on its second anniversary, news broke that was tantalizingly close to a game-changer. Josh Rogin reported that a State Department cable indicated the strong belief that Bashar al-Assad’s forces had used chemical weapons. The next day, Rogin reported a stern denial from the State Department. In the fog of war, the two claims seemed to have roughly equal credibility. But the Obama administration’s denial raised some eyebrows, since President Obama had declared the use of chemical weapons a clear red line that would necessitate intervention in the conflict. Was he moving the red line again, as he had appeared to do just months before, to avoid taking action?
Michael Ledeen: The Syrian War Has Metastasized. Is Obama in It?—Has Obama finally put some teeth in his thus-far empty cry “Assad must go”?
Bruce Bawer: Europe: A Continent in Flight—More and more people are abandoning their communities to escape Islamic tyranny.
Andrew G. Bostom: Denmark: A Century and Three Quarters of Telling the Truth about Islam—Erudite, honest Danish intellectuals, and academics, spanning 176 years, from Søren Kierkegaard, to, at present, Lars Hedegaard and Tina Magaard, have openly expressed forthright truths about Islam. It is only now, in our sad era, that the free expression of such honest wisdom has been threatened by the mutually abetting totalitarian scourges of cultural relativism, and Islamic supremacism.
Conal Urquhart: Oxford in Uproar over Motion to Boycott Israel—The Oxford University Students’ Union (OUSU) meets on Wednesday to decide on a motion backing the boycott of Israel.
Thomas Sowell: Shepherds and Sheep—John Stuart Mill’s classic essay “On Liberty” gives reasons why some people should not be taking over other people’s decisions about their own lives. But Professor Cass Sunstein of Harvard has given reasons to the contrary. He cites research showing “that people make a lot of mistakes, and that those mistakes can prove extremely damaging.”
Mark Langfan: Hagel’s $160 Billion ‘West Bank’ US Troops Deathtrap— Hagel, at Obama’s bidding, plans to send troops to Judea andSamaria (the “West Bank”) where they would soon be victims of Hamas terror. It’s in writing. An investigative report.
Joseph Klein: Chuck Hagel’s Plan for U.S. Forces in ‘Palestine’—The Secretary of Defense nominee proposed forced two-state solution and troop occupation.
Mark Tapson: Inside the Muslim Student Association Conference, Part 2—Radical speakers take the stage.
Arnold Ahlert: CUNY Welcomes Jew-Hating Gay Activists—Anti-Israel hate-fest set to bash the only safe haven for homosexuals in the Middle East.
Barry Rubin: Islamists to West: Put Up Your Hands and Hand Over Your Property!— Here’s the perfect parable for understanding not just the contemporary Middle East but the wider world today. So far, it’s only being covered in the Finnish media which, I assume, means nobody outside that country knows about it.
Rachel Rose Hartman: Administration faces question: Are donors paying for Obama access?— On Friday, New York Times reporter Nicholas Confessore wrote of an alleged pay-for-access arrangement through OFA [Organizing for America]: “Giving or raising $500,000 or more puts donors on a national advisory board for Mr. Obama’s group and the privilege of attending quarterly meetings with the president, along with other meetings at the White House.”
Jonathan S. Tobin: Obama’s Hypocritical Access Sale—To say that Barack Obama has never practiced what he preached about campaign finance reform is the understatement of the century. The president rode to office and then was re-elected with the help of a massive influx of private cash, all the while saying that money was the root of all political evil. He routinely denounces the wealthy and the influence of big business while taking their money and selling access to the White House to the same Wall Street moguls to whom he accuses Republicans of being in thrall.
R.B.A. Di Muccio: Eliminating the Deficit, Liberal Style—What if we take the liberals at their word, and try to solve the deficit problem only with tax increases, not spending cuts? The numbers demonstrate the absurdity of their posturing.
Glenn Fairman: Prudence or Purity? A Political Dilemma—Americans more attuned to the call of revelation than the “smoke filled room” are often hard pressed to accept the raw human reality of politics, and perhaps rightly so; but it is a cold chiseled reality nonetheless.
Peter Wehner: In Praise of Bob Woodward—I want to add to what Jonathan wrote about Bob Woodward calling out the White House for misrepresenting its role in sequestration and “moving the goalposts” in order to get its way. Mr. Woodward is clearly sympathetic to President Obama’s approach; he’s said as much. (“Obama’s call for a balanced approach is reasonable,” Woodward writes, “and he makes a strong case that those in the top income brackets could and should pay more.”) But Woodward has enough integrity as a journalist not to allow a willful distortion to go unchecked and unchallenged.
J.T. Hatter: The Media Threat to Democracy—From the far ends of the political spectrum, Ann Coulter and Pat Caddell agree: the principal threat to American democracy is the liberal mainstream media.
Dan Dagget: Using Gun Violence to Get Elected—Liberals aren’t truly interested in solving problems such as gun violence, a deteriorating economy, or racial polarization because they are so totally invested in using them.
Jack Kemp: Gun rights betrayal—When a gun rights advocate elected to Congress with tea party support goes soft on an “assault weapons” ban, there are consequences.
David Limbaugh: Obama’s Game Playing Is Wearing Thin—Obama has repeatedly demonstrated that he does not consider himself bound by a duty of good faith to square with the American people. He has shown that he is unafraid to utter the most egregious distortions and exaggerations; he has no fear of being called on them.
Dennis Prager: Environmentalism and Human Sacrifice—Last week, Bjorn Lomborg, the widely published Danish professor and director of one of the world’s leading environmental think tanks, the Copenhagen Consensus Center, published an article about the Philippines’ decision, after 12 years, to allow genetically modified (GM) rice — “golden rice” — to be grown and consumed in that country.
Blessings in the Book of Revelation is a book that you need to read, especially now. There are blessings throughout the Scriptures but Revelation is the only book in the Bible actually containing a specific blessing for reading it. It’s repeated twice, once at the beginning and again at the end. This is the reason that I believe Revelation should be the first step toward studying biblical prophecy. Though not easy to do, Revelation can be broken down and understood by anyone, not just the academic elite. So, Revelation’s blessings are for everyone. Click here to order the eBook. Click here to order the paperback.
Other Books by Neil Snyder
- Stand! is a suspense novel that exposes the lies, corruption, and greed underlying the theory that man-made CO2 emissions are responsible for global warming. Professor Wes Carlyle and Karen Sterling, his research collaborator, carefully scan the audience for their would-be attacker—a member of the enviro-gestapo who has been following them for days. Wes spots his man in the back of the room leaning against the wall. Suddenly, another man in the audience steps forward and moves toward Karen at a menacing pace. With a vicious stroke, he swings a billy club at her head. Click here to order the eBook. Click here to order the paperback.
- What Will You Do with the Rest of Your Life? deals with a question that every Christian has to consider: what should I do with my life? Click here to order the eBook. Click here to order the paperback.
- Falsely Accused is a true story about a young woman who was accused of committing a double homicide. It’s about a travesty of justice, and it reveals Yahweh intervening in the life of a believer to rescue her from danger in the face of seemingly insurmountable odds. Everyone will enjoy the book, but young people in particular need to read it because the mistakes made that led to the problem could have been avoided. They were the kinds of mistakes that young people are prone to make. As they say, forewarned is forearmed. Click here to order the eBook. Click here to order the paperback.