Between Iraq and an Immigration reform bill

I want to comment on the comprehensive immigration reform that is being worked over. Let’s understand why this reform is important and in all likeliness will be passed because there is really no choice. To the point, the America's economy is weak. There is no way to sugar coat it. Regardless of what you hear and see on the news concerning the economy no matter how much it is spun that the American economy is growing you might want to take those spins with a grain of salt.

Wars need financing so that means money is necessary. Money the U.S. doesn’t really have. So in order to finance the Iraq venture, treasuries are auctioned to raise money. Countries like China buy these treasuries with the dollars that were used to buy their goods. We take that money and spend, spend, spend. When it is time to repay, we print, print, print. As another article puts it “Since the treasury has the power to print dollars, payment on such securities can be considered certain…”. When we print it reduces the value of our currency until it is no longer of value which is what we are facing today.

The printing of dollars decreases the value and leads to inflation. It means that consumers will have to come up with more money to make purchases. But because of cheap foreign labor and the corporations drive to make profits consumers have less money as it is. It will also cost more to borrow money. Well consumption is a measure of the GDP and if consumption slows the GDP will slow. Additionally investment is a part of the GDP and high interest rates will affect this part of the equation because people will be slow to borrow for investment. And not to mention that our corporate citizens have gotten tax breaks does not help either.

So the solution: immigration reform and the dissolution of the boarders. Why? To continue the flow of cheap labor without penalty, to reduce the red tape that arises from cross boarder transactions, and once the North American continent is unified, the introduction of a new currency the Amero, the new currency of this new union. Why the new currency? Well as stated earlier the dollar is on the outs so how do you remedy that? Create a new currency. In my opinion there is really no real need for the three countries to unify but there is a need to get rid of a bad currency and what better way to do it.

So if America wants to stay a float it will have no choice but to go this route. As we have seen in the past couple of days Kuwait and Syria have stopped pegging their currency to the dollar, Iraq’s Saddam Hussein was heading in that direction and we see what happened to him. Iran is heading in that direction and you see what the U.S. is threatening to do to them. America will not be able to threaten everyone that wants to abandon the dollar so what choice is there?