Each time the dollar price of oil rises, the US trade deficit rises, requiring more foreign financing of US energy use. Bush has managed to drive the US oil import bill up from $106 billion in 2006 to approximately $500 billion 18 months later—every dollar of which has to be financed by foreigners.
Without foreign money, the US "superpower" cannot finance its imports or its government's operation.
When the oil price rises, Americans, who are increasingly poor, cannot pay their winter heating bills. Thus, the Senate's military spending bill contains more heating subsidies for America's growing legion of poor people.
The rising price of energy drives up the price of producing and transporting all goods, but American incomes are not rising except for the extremely rich.
The disappearing value of the US dollar, which pushes up oil prices and raises the trade deficit, then pushes up heating subsidies and raises the budget deficit.
May 23, 2008
War Abroad and Poverty at Home
By Paul Craig Roberts
As the title of this post says, end the occupations, end the wars, disarm, and disband the Pentagon lock, stock, and barrel. Jesus said to turn the other cheek. Anyone who is against ending the wars and occupations and doing away with the war-making machine that is the Pentagon is antichrist. That's all there is to it.