Monday, December 05, 2011

War With Iran - A Bipartisan Endeavor

Who said just the Republicans have lost their minds in overwhelmingly supporting yet another war that can't be paid for -
The U.S. Senate took aim at the Iranian central bank in an effort to choke off oil exports, while the European Union stopped short of targeting crude as it tightened sanctions intended to curb Iran’s nuclear program.

The Senate bill, passed unanimously yesterday, would give the president the power starting July 1 to bar foreign financial institutions that do business with Iran’s central bank from having correspondent bank accounts in the U.S. If enacted, it could be much harder for foreign companies to pay for oil imports from Iran, the world’s third-largest crude exporter. The Obama administration opposes the legislation.
The Real Effect
Policy can be a wonderful thing. It can help to shape, mold and direct an otherwise shapeless situation. Policy without the ability to project that policy is just useless prattle at best and dangerous at worst. The US is functionally bankrupt and has been for quite some time, buoyed in the short term by massive borrowing, the productivity and cooperation of it's citizens. The apex of this funding has come and gone, but like all regimes that fall,we want to deny reality. The Federal Reserve is purchasing assets at a staggering rate, propping up the economy but assassinating the dollar. The only saving grace so far has been that all other economies feel the need to die on the economic sword as well, especially Europe. (Funny, isn't it this disjointed economic balance that led to a post WWII US to out-compete a bombed out Europe?)

With both parties slapping tape over the economic warning lights of the economy, will it be any wonder when the economic engine not only seizes, but bursts into flames? Of course, no one saw it coming. Naturally if Iran gets bothered enough, they will cut off oil exports which will in turn destroy much of the remaining economy.

Of course, we might be able to deal with Iran. I'm sure a few bombed carriers would ensure the patriotic resolve needed to get it done. But China and Russia as well? Not too bright...

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