Egypt Chaos Threatens U.S. Economy

Yes, we all know our economy is vulnerable. When you owe $15 trillion dollars, have lost millions of manufacturing jobs over the past 30 years, have pegged our money system to the air, and are 100% dependent on cheap oil showing up everyday mostly from countries who don't like us,...that seems to be an understatement.

As we have posted...imagine if unrest spreads through the oil producing countries and gasoline heads to $10 per gallon? That would shut the American way of life down in a hurry. Forget about what that would do to the prices of EVERYTHING we buy that is delivered by trucks burning gasoline and diesel.

With that as a background, this headline just crossed my screen;

Egypt Turmoil Threatens U.S. Economy

Rising prices for food and fuel helped drive the uprisings racking the Middle East, now those uprisings are pushing prices higher still and threatening America’s economic recovery.

Prices had been on the rise for months around the world as increased demand following a long recession – especially driven by economic booms in China and India – squeezed available resources.

Massive increases in the cost of staples like flour and cooking fuel helped stoke popular anger in the poor countries in the Middle East and could do the same elsewhere. Note well that the ChiComs are heavily censoring the news on the Arab uprising lest their inflation-strained subjects get any funny ideas

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In the U.S., increased competition and rising domestic demand augmented by a regulatory crackdown on the energy sector – particularly oil and coal -- has driven a still relatively modest increase in food and fuel prices. Enough to be a small drag on recovery, but not stifle it.

Here, the Federal Reserve has been gushing cheap dollars into the economy for three years and the Obama Democrats have ramped up spending and borrowing to historic highs all in effort to stave off what they said would have been another Great Depression.

Read more: http://www.foxnews.com/politics/2011/02/01/egypt-turmoil-threatens-economy/#ixzz1Cippkx23