In regards to the devaluing of the US dollar. It is not always a bad thing. We have been running a significant trade deficit for years. At the same time, this administration has signed a significant number of free trade agreements with nations in South America, Eastern Europe and Caucus nations among the many. In order to make that a real, viable interest of our economy, these nations have to be able to afford to buy our goods. That means that their currency has to be somewhat competitive with ours.

We don't just want to put money in their economies buying cheap goods (thus reducing our trade with China and some of our economic risk), we want them to put it back into ours. As this report indicates, exports to Europe, where the Euro is strong against the dollar, has increased significantly and probably lent a 1 point increase in growth. that is actually good in the long term in creating US manufacturing mobs and staving off severe recession.

Our vulnerability though is the risk of a over extended credit lines and the price of oil. continued economic growth could off set the extended credit problems. the price of oil, on the other hand, can be offset by either a serious down turn in economy, thus oil utilization, an increase in availability through additional drilling either within the states or in new deposits or in old deposits with new technology or a new technology all together when we hit the "pain point".

I am hoping we work on the new technology. Not because I believe we will be totally oil independent, but because it would give us again the upper hand on energy development and control and create a new economic paradigm for the west. The potential income from both small and large markets would be a serious economic boon, not to mention the impact on many other industries like transportation and housing.

so, dollar down turn is not totally a bad thing as long as it is in small increments, over a measured time and stabilizes early enough. Improved economies in this hemisphere would provide a fairly protected market for us and diversify away from the East and the control of our markets by China and the ME.

Wow, hope that was coherent enough. You can visit the other links provided for additional information and reporting on the economic war. Just remember, high oil prices aren't necessarily good for even our most virulent enemies. They have to buy gas, support business, transport goods and maintain their military, too. all with not even a one hundredth of our income or budget.

Think of them as an octopus trying to put their tentacles all over the middle east. Everywhere they seek to expand, they expose themselves economically, politically, and even physically. a country with a 300 bil budget is hard pressed to compete on that level even regionally.

Pardon the length of this post. I hope it is coherent though I know there are many more issues that could be included in this analysis.