The Constitution
The Constitution of the United States – 1787
We the People of the United States, in Order to form a more perfect Union, establish
Justice, insure domestic Tranquility, provide for the common defense, promote the
general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do
ordain and establish this Constitution for the United States of America.
Article. I.
Section. 1.
All legislative Powers herein granted shall be vested in a Congress of the United States,
which shall consist of a Senate and House of Representatives.
Section. 2.
The House of Representatives shall be composed of Members chosen every second
Year by the People of the several States, and the Electors in each State shall have the
Qualifications requisite for Electors of the most numerous Branch of the State Legislature.
No Person shall be a Representative who shall not have attained to the Age of twenty
five Years, and been seven Years a Citizen of the United States, and who shall not,
when elected, be an Inhabitant of that State in which he shall be chosen.
Representatives and direct Taxes shall be apportioned among the several States which
may be included within this Union, according to their respective Numbers, which shall be
determined by adding to the whole Number of free Persons, including those bound to
Service for a Term of Years, and excluding Indians not taxed, three fifths of all other
Persons. The actual Enumeration shall be made within three Years after the first Meeting
of the Congress of the United States, and within every subsequent Term of ten Years, in
such Manner as they shall by Law direct. The Number of Representatives shall not
exceed one for every thirty Thousand, but each State shall have at Least one
Representative; and until such enumeration shall be made, the State of New Hampshire
shall be entitled to choose three, Massachusetts eight, Rhode-Island and Providence
Plantations one, Connecticut five, New-York six, New Jersey four, Pennsylvania eight,
Delaware one, Maryland six, Virginia ten, North Carolina five, South Carolina five, and
Georgia three.
When vacancies happen in the Representation from any State, the Executive Authority
thereof shall issue Writs of Election to fill such Vacancies.
The House of Representatives shall choose their Speaker and other Officers; and shall
have the sole Power of Impeachment.
Section. 3.
The Senate of the United States shall be composed of two Senators from each State,
chosen by the Legislature thereof for six Years; and each Senator shall have one Vote.
Immediately after they shall be assembled in Consequence of the first Election, they shall
be divided as equally as may be into three Classes. The Seats of the Senators of the first
Class shall be vacated at the Expiration of the second Year, of the second Class at the
Expiration of the fourth Year, and of the third Class at the Expiration of the sixth Year, so
that one third may be chosen every second Year; and if Vacancies happen by
Resignation, or otherwise, during the Recess of the Legislature of any State, the
Executive thereof may make temporary Appointments until the next Meeting of the
Legislature, which shall then fill such Vacancies.
No Person shall be a Senator who shall not have attained to the Age of thirty Years, and
been nine Years a Citizen of the United States, and who shall not, when elected, be an
Inhabitant of that State for which he shall be chosen.
The Vice President of the United States shall be President of the Senate, but shall have
no Vote, unless they be equally divided.
The Senate shall choose their other Officers, and also a President pro tempore, in the
Absence of the Vice President, or when he shall exercise the Office of President of the
United States.
The Senate shall have the sole Power to try all Impeachments. When sitting for that
Purpose, they shall be on Oath or Affirmation. When the President of the United States is
tried, the Chief Justice shall preside: And no Person shall be convicted without the
Concurrence of two thirds of the Members present.
Judgment in Cases of Impeachment shall not extend further than to removal from Office,
and disqualification to hold and enjoy any Office of honor, Trust or Profit under the United
States: but the Party convicted shall nevertheless be liable and subject to Indictment, Trial,
Judgment and Punishment, according to Law.
Section. 4.
The Times, Places and Manner of holding Elections for Senators and Representatives,
shall be prescribed in each State by the Legislature thereof; but the Congress may at any
time by Law make or alter such Regulations, except as to the Places of choosing
Senators.
The Congress shall assemble at least once in every Year, and such Meeting shall be on
the first Monday in December, unless they shall by Law appoint a different Day.
Section. 5.
Each House shall be the Judge of the Elections, Returns and Qualifications of its own
Members, and a Majority of each shall constitute a Quorum to do Business; but a smaller
Number may adjourn from day to day, and may be authorized to compel the Attendance
of absent Members, in such Manner, and under such Penalties as each House may
provide.
Each House may determine the Rules of its Proceedings, punish its Members for
disorderly Behavior, and, with the Concurrence of two thirds, expel a Member.
Each House shall keep a Journal of its Proceedings, and from time to time publish the
same, excepting such Parts as may in their Judgment require Secrecy; and the Yeas and
Nays of the Members of either House on any question shall, at the Desire of one fifth of
those Present, be entered on the Journal.
Neither House, during the Session of Congress, shall, without the Consent of the other,
adjourn for more than three days, nor to any other Place than that in which the two
Houses shall be sitting.
Section. 6.
The Senators and Representatives shall receive a Compensation for their Services, to be
ascertained by Law, and paid out of the Treasury of the United States. They shall in all
Cases, except Treason, Felony and Breach of the Peace, be privileged from Arrest
during their Attendance at the Session of their respective Houses, and in going to and
returning from the same; and for any Speech or Debate in either House, they shall not be
questioned in any other Place.
No Senator or Representative shall, during the Time for which he was elected, be
appointed to any civil Office under the Authority of the United States, which shall have
been created, or the Emoluments whereof shall have been increased during such time;
and no Person holding any Office under the United States, shall be a Member of either
House during his Continuance in Office.
Section. 7.
All Bills for raising Revenue shall originate in the House of Representatives; but the
Senate may propose or concur with Amendments as on other Bills.
Every Bill which shall have passed the House of Representatives and the Senate, shall,
before it become a Law, be presented to the President of the United States: If he approve
he shall sign it, but if not he shall return it, with his Objections to that House in which it
shall have originated, who shall enter the Objections at large on their Journal, and
proceed to reconsider it. If after such Reconsideration two thirds of that House shall
agree to pass the Bill, it shall be sent, together with the Objections, to the other House, by
which it shall likewise be reconsidered, and if approved by two thirds of that House, it
shall become a Law. But in all such Cases the Votes of both Houses shall be determined
by yeas and Nays, and the Names of the Persons voting for and against the Bill shall be
entered on the Journal of each House respectively. If any Bill shall not be returned by the
President within ten Days (Sundays excepted) after it shall have been presented to him,
the Same shall be a Law, in like Manner as if he had signed it, unless the Congress by
their Adjournment prevent its Return, in which Case it shall not be a Law.
Every Order, Resolution, or Vote to which the Concurrence of the Senate and House of
Representatives may be necessary (except on a question of Adjournment) shall be
presented to the President of the United States; and before the Same shall take Effect,
shall be approved by him, or being disapproved by him, shall be re-passed by two thirds
of the Senate and House of Representatives, according to the Rules and Limitations
prescribed in the Case of a Bill.
Section. 8.
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to
pay the Debts and provide for the common defense and general Welfare of the United
States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
To borrow Money on the credit of the United States;
To regulate Commerce with foreign Nations, and among the several States, and with the
Indian Tribes;
To establish an uniform Rule of Naturalization, and uniform Laws on the subject of
Bankruptcies throughout the United States;
To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of
Weights and Measures;
To provide for the Punishment of counterfeiting the Securities and current Coin of the
United States;
To establish Post Offices and post Roads;
To promote the Progress of Science and useful Arts, by securing for limited Times to
Authors and Inventors the exclusive Right to their respective Writings and Discoveries;
To constitute Tribunals inferior to the Supreme Court;
To define and punish Piracies and Felonies committed on the high Seas, and Offences
against the Law of Nations;
To declare War, grant Letters of Marque and Reprisal, and make Rules concerning
Captures on Land and Water;
To raise and support Armies, but no Appropriation of Money to that Use shall be for a
longer Term than two Years;
To provide and maintain a Navy;
To make Rules for the Government and Regulation of the land and naval Forces;
To provide for calling forth the Militia to execute the Laws of the Union, suppress
Insurrections and repel Invasions;
To provide for organizing, arming, and disciplining, the Militia, and for governing such Part
of them as may be employed in the Service of the United States, reserving to the States
respectively, the Appointment of the Officers, and the Authority of training the Militia
according to the discipline prescribed by Congress;
To exercise exclusive Legislation in all Cases whatsoever, over such District (not
exceeding ten Miles square) as may, by Cession of particular States, and the
Acceptance of Congress, become the Seat of the Government of the United States, and
to exercise like Authority over all Places purchased by the Consent of the Legislature of
the State in which the Same shall be, for the Erection of Forts, Magazines, Arsenals,
dock-Yards, and other needful Buildings;–And
To make all Laws which shall be necessary and proper for carrying into Execution the
foregoing Powers, and all other Powers vested by this Constitution in the Government of
the United States, or in any Department or Officer thereof.
Section. 9.
The Migration or Importation of such Persons as any of the States now existing shall think
proper to admit, shall not be prohibited by the Congress prior to the Year one thousand
eight hundred and eight, but a Tax or duty may be imposed on such Importation, not
exceeding ten dollars for each Person.
The Privilege of the Writ of Habeas Corpus shall not be suspended, unless when in
Cases of Rebellion or Invasion the public Safety may require it.
No Bill of Attainder or ex post facto Law shall be passed.
No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or
enumeration herein before directed to be taken.
No Tax or Duty shall be laid on Articles exported from any State.
No Preference shall be given by any Regulation of Commerce or Revenue to the Ports of
one State over those of another; nor shall Vessels bound to, or from, one State, be
obliged to enter, clear, or pay Duties in another.
No Money shall be drawn from the Treasury, but in Consequence of Appropriations made
by Law; and a regular Statement and Account of the Receipts and Expenditures of all
public Money shall be published from time to time.
No Title of Nobility shall be granted by the United States: And no Person holding any
Office of Profit or Trust under them, shall, without the Consent of the Congress, accept
of any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince,
or foreign State.
Section. 10.
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque
and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a
Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law
impairing the Obligation of Contracts, or grant any Title of Nobility.
No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports
or Exports, except what may be absolutely necessary for executing it’s inspection Laws:
and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports,
shall be for the Use of the Treasury of the United States; and all such Laws shall be
subject to the Revision and Controul of the Congress.
No State shall, without the Consent of Congress, lay any Duty of Tonnage, keep Troops,
or Ships of War in time of Peace, enter into any Agreement or Compact with another
State, or with a foreign Power, or engage in War, unless actually invaded, or in such
imminent Danger as will not admit of delay.
Article. II.
Section. 1.
The executive Power shall be vested in a President of the United States of America. He
shall hold his Office during the Term of four Years, and, together with the Vice President,
chosen for the same Term, be elected, as follows:
Each State shall appoint, in such Manner as the Legislature thereof may direct, a Number
of Electors, equal to the whole Number of Senators and Representatives to which the
State may be entitled in the Congress: but no Senator or Representative, or Person
holding an Office of Trust or Profit under the United States, shall be appointed an Elector.
The Electors shall meet in their respective States, and vote by Ballot for two Persons, of
whom one at least shall not be an Inhabitant of the same State with themselves. And they
shall make a List of all the Persons voted for, and of the Number of Votes for each;
which List they shall sign and certify, and transmit sealed to the Seat of the Government
of the United States, directed to the President of the Senate. The President of the Senate
shall, in the Presence of the Senate and House of Representatives, open all the
Certificates, and the Votes shall then be counted. The Person having the greatest Number
of Votes shall be the President, if such Number be a Majority of the whole Number of
Electors appointed; and if there be more than one who have such Majority, and have an
equal Number of Votes, then the House of Representatives shall immediately choose by
Ballot one of them for President; and if no Person have a Majority, then from the five
highest on the List the said House shall in like Manner choose the President. But in
choosing the President, the Votes shall be taken by States, the Representation from each
State having one Vote; a quorum for this purpose shall consist of a Member or Members
from two thirds of the States, and a Majority of all the States shall be necessary to a
Choice. In every Case, after the Choice of the President, the Person having the greatest
Number of Votes of the Electors shall be the Vice President. But if there should remain
two or more who have equal Votes, the Senate shall choose from them by Ballot the Vice
President.
The Congress may determine the Time of choosing the Electors, and the Day on which
they shall give their Votes; which Day shall be the same throughout the United States.
No Person except a natural born Citizen, or a Citizen of the United States, at the time of
the Adoption of this Constitution, shall be eligible to the Office of President; neither shall
any Person be eligible to that Office who shall not have attained to the Age of thirty five
Years, and been fourteen Years a Resident within the United States.
In Case of the Removal of the President from Office, or of his Death, Resignation, or
Inability to discharge the Powers and Duties of the said Office, the Same shall devolve on
the Vice President, and the Congress may by Law provide for the Case of Removal,
Death, Resignation or Inability, both of the President and Vice President, declaring what
Officer shall then act as President, and such Officer shall act accordingly, until the
Disability be removed, or a President shall be elected.
The President shall, at stated Times, receive for his Services, a Compensation, which
shall neither be increased nor diminished during the Period for which he shall have been
elected, and he shall not receive within that Period any other Emolument from the United
States, or any of them.
Before he enter on the Execution of his Office, he shall take the following Oath or
Affirmation:–”I do solemnly swear (or affirm) that I will faithfully execute the Office of
President of the United States, and will to the best of my Ability, preserve, protect and
defend the Constitution of the United States.”
Section. 2.
The President shall be Commander in Chief of the Army and Navy of the United States,
and of the Militia of the several States, when called into the actual Service of the United
States; he may require the Opinion, in writing, of the principal Officer in each of the
executive Departments, upon any Subject relating to the Duties of their respective
Offices, and he shall have Power to grant Reprieves and Pardons for Offences against
the United States, except in Cases of Impeachment.
He shall have Power, by and with the Advice and Consent of the Senate, to make
Treaties, provided two thirds of the Senators present concur; and he shall nominate, and
by and with the Advice and Consent of the Senate, shall appoint Ambassadors, other
public Ministers and Consuls, Judges of the supreme Court, and all other Officers of the
United States, whose Appointments are not herein otherwise provided for, and which
shall be established by Law: but the Congress may by Law vest the Appointment of such
inferior Officers, as they think proper, in the President alone, in the Courts of Law, or in
the Heads of Departments.
The President shall have Power to fill up all Vacancies that may happen during the
Recess of the Senate, by granting Commissions which shall expire at the End of their
next Session.
Section. 3.
He shall from time to time give to the Congress Information of the State of the Union, and
recommend to their Consideration such Measures as he shall judge necessary and
expedient; he may, on extraordinary Occasions, convene both Houses, or either of them,
and in Case of Disagreement between them, with Respect to the Time of Adjournment, he
may adjourn them to such Time as he shall think proper; he shall receive Ambassadors
and other public Ministers; he shall take Care that the Laws be faithfully executed, and
shall Commission all the Officers of the United States.
Section. 4.
The President, Vice President and all civil Officers of the United States, shall be removed
from Office on Impeachment for, and Conviction of, Treason, Bribery, or other high
Crimes and Misdemeanors.
Article III.
Section. 1.
The judicial Power of the United States shall be vested in one Supreme Court, and in such
inferior Courts as the Congress may from time to time ordain and establish. The Judges,
both of the supreme and inferior Courts, shall hold their Offices during good Behavior,
and shall, at stated Times, receive for their Services a Compensation, which shall not be
diminished during their Continuance in Office.
Section. 2.
The judicial Power shall extend to all Cases, in Law and Equity, arising under this
Constitution, the Laws of the United States, and Treaties made, or which shall be made,
under their Authority;–to all Cases affecting Ambassadors, other public Ministers and
Consuls;–to all Cases of admiralty and maritime Jurisdiction;–to Controversies to which
the United States shall be a Party;–to Controversies between two or more States;–
between a State and Citizens of another State;–between Citizens of different States;–
between Citizens of the same State claiming Lands under Grants of different States, and
between a State, or the Citizens thereof, and foreign States, Citizens or Subjects.
In all Cases affecting Ambassadors, other public Ministers and Consuls, and those in
which a State shall be Party, the Supreme Court shall have original Jurisdiction. In all the
other Cases before mentioned, the Supreme Court shall have appellate Jurisdiction, both
as to Law and Fact, with such Exceptions, and under such Regulations as the Congress
shall make.
The Trial of all Crimes, except in Cases of Impeachment, shall be by Jury; and such Trial
shall be held in the State where the said Crimes shall have been committed; but when not
committed within any State, the Trial shall be at such Place or Places as the Congress
may by Law have directed.
Section. 3.
Treason against the United States, shall consist only in levying War against them, or in
adhering to their Enemies, giving them Aid and Comfort. No Person shall be convicted of
Treason unless on the Testimony of two Witnesses to the same overt Act, or on
Confession in open Court.
The Congress shall have Power to declare the Punishment of Treason, but no Attainder
of Treason shall work Corruption of Blood, or Forfeiture except during the Life of the
Person attainted.
Article. IV.
Section. 1.
Full Faith and Credit shall be given in each State to the public Acts, Records, and judicial
Proceedings of every other State. And the Congress may by general Laws prescribe the
Manner in which such Acts, Records and Proceedings shall be proved, and the Effect
thereof.
Section. 2.
The Citizens of each State shall be entitled to all Privileges and Immunities of Citizens in
the several States.
A Person charged in any State with Treason, Felony, or other Crime, who shall flee from
Justice, and be found in another State, shall on Demand of the executive Authority of the
State from which he fled, be delivered up, to be removed to the State having Jurisdiction
of the Crime.
No Person held to Service or Labour in one State, under the Laws thereof, escaping into
another, shall, in Consequence of any Law or Regulation therein, be discharged from
such Service or Labour, but shall be delivered up on Claim of the Party to whom such
Service or Labour may be due.
Section. 3.
New States may be admitted by the Congress into this Union; but no new State shall be
formed or erected within the Jurisdiction of any other State; nor any State be formed by
the Junction of two or more States, or Parts of States, without the Consent of the
Legislatures of the States concerned as well as of the Congress.
The Congress shall have Power to dispose of and make all needful Rules and Regulations
respecting the Territory or other Property belonging to the United States; and nothing in
this Constitution shall be so construed as to Prejudice any Claims of the United States, or
of any particular State.
Section. 4.
The United States shall guarantee to every State in this Union a Republican Form of
Government, and shall protect each of them against Invasion; and on Application of the
Legislature, or of the Executive (when the Legislature cannot be convened), against
domestic Violence.
Article. V.
The Congress, whenever two thirds of both Houses shall deem it necessary, shall
propose Amendments to this Constitution, or, on the Application of the Legislatures of
two thirds of the several States, shall call a Convention for proposing Amendments,
which, in either Case, shall be valid to all Intents and Purposes, as Part of this
Constitution, when ratified by the Legislatures of three fourths of the several States, or
by Conventions in three fourths thereof, as the one or the other Mode of Ratification may
be proposed by the Congress; Provided that no Amendment which may be made prior to
the Year One thousand eight hundred and eight shall in any Manner affect the first and
fourth Clauses in the Ninth Section of the first Article; and that no State, without its
Consent, shall be deprived of its equal Suffrage in the Senate.
Article. VI.
All Debts contracted and Engagements entered into, before the Adoption of this
Constitution, shall be as valid against the United States under this Constitution, as under
the Confederation.
This Constitution, and the Laws of the United States which shall be made in Pursuance
thereof; and all Treaties made, or which shall be made, under the Authority of the United
States, shall be the supreme Law of the Land; and the Judges in every State shall be
bound thereby, any Thing in the Constitution or Laws of any State to the Contrary
notwithstanding.
The Senators and Representatives before mentioned, and the Members of the several
State Legislatures, and all executive and judicial Officers, both of the United States and of
the several States, shall be bound by Oath or Affirmation, to support this Constitution; but
no religious Test shall ever be required as a Qualification to any Office or public Trust
under the United States.
Article. VII.
The Ratification of the Conventions of nine States, shall be sufficient for the
Establishment of this Constitution between the States so ratifying the Same.
The Word, “the,” being interlined between the seventh and eighth Lines of the first Page,
the Word “Thirty” being partly written on an erasure in the fifteenth Line of the first Page,
The Words “is tried” being interlined between the thirty second and thirty third Lines of
the first Page and the Word “the” being interlined between the forty third and forty fourth
Lines of the second Page.
Attest William Jackson Secretary
Done in Convention by the Unanimous Consent of the States present the Seventeenth
Day of September in the Year of our Lord one thousand seven hundred and Eighty seven
and of the Independence of the United States of America the Twelfth In witness whereof
We have hereunto subscribed our Names,
G°. Washington President and deputy from Virginia
Delaware Geo: Read Gunning Bedford jun John Dickinson Richard Bassett Jaco: Broom
Maryland James McHenry Dan of St Thos. Jenifer Danl. Carroll
Virginia John Blair James Madison Jr.
North Carolina Wm. Blount Richd. Dobbs Spaight Hu Williamson
South Carolina J. Rutledge Charles Cotesworth Pinckney Charles Pinckney Pierce
Butler
Georgia William Few Abr Baldwin
New Hampshire John Langdon Nicholas Gilman
Massachusetts Nathaniel Gorham Rufus King
Connecticut Wm. Saml. Johnson Roger Sherman
New York Alexander Hamilton
New Jersey Wil: Livingston David Brearley Wm. Paterson Jona: Dayton
Pennsylvania B Franklin Thomas Mifflin Robt. Morris Geo. Clymer Thos.
FitzSimons Jared Ingersoll James Wilson Gouv Morris
Watching The Dollar Die

Watching The Dollar Die
By Paul Craig Roberts
3-14-8
I’ve been watching the dollar die all my life. I sometimes think I will outlast it.
When I was a young man, gold was $35 an ounce. Today one ounce gold bullion coins, such as the Canadian Maple Leaf, cost more than $1,000.
Our coinage was silver. Our dimes, quarters, and half dollars had purchasing power. Even the nickel could purchase a candy bar, ice cream cone or soft drink, and a penny could purchase bubble gum or hard candy. If a kid could collect 5 discarded soft drink bottles from a construction site, the 2 cents deposit on the returnable bottles was enough for the Saturday afternoon movie. Gasoline was 32 cents a gallon. A dollar’s worth was enough for a Saturday night date.
Our silver coinage was 90 per cent silver. People sometimes melted coins in order to make silver spoons, known as coin silver, which can still be found in antique shops. Except for the reduced silver (40 per cent) Kennedy half dollar which continued until 1970, 1964 was the last year of America’s silver coinage. The copper penny departed in 1982. As Assistant Secretary of the Treasury, I opposed the demise of America’s last commodity money, but I couldn’t prevent the copper penny’s death.
During World War II (1941-1945), nickel was diverted from coinage to war, and the US mint issued a wartime silver (35 per cent) nickel.
It is not easy to find items to purchase with today’s US coins, but the silver coins of the same face value still have purchasing power. The 10 cent piece of my youth contains $1.42 worth of silver at today’s silver price. The quarter is worth $3.55, and the half dollar contains $7.10 of silver. The silver dollar is worth 15.2 times its face value. These are just the silver values of coins that might be worth far more depending on condition and rarity. The silver in the wartime nickel is worth $1.10, which is 22 times the coin’s face value. Even the copper penny is worth 2.5 cents.
When I was a young man enjoying travels in Europe, the German mark or Swiss franc traded four to one US dollar. The euro, which is today’s equivalent to the mark, costs $1.55.
People who haven’t accumulated much age have little idea of the corrosive power of “acceptable” inflation. Unlike gold and silver, fiat money has no intrinsic value. When money is created faster than goods and services it drives up prices, thus driving down the value of the money. If freely traded currencies are excessively printed or if inflation, budget deficits, and trade deficits drive currencies off their fixed exchange rates, prices of imports rise as the foreign exchange value of the currency falls.
Today the US, heavily dependent on imports, is subject to double-barrel inflation from both domestic money creation and decline in the dollar’s foreign exchange value.
The US inflation rate is about twice as high as the government’s inflation measures report. In order to hold down Social Security payments, the government changed the way it measures inflation. In the old measure, inflation measured the nominal cost of a defined standard of living. If the price of steak rose, up went the inflation rate. Today if the price of steak rises, the government assumes that people switch to hamburger. Inflation doesn’t go up. Instead, the standard of living it measures goes down.
This is just one of the many ways that the government pulls the wool over our eyes.
With the dollar value of the euro rising through the roof, today a vacation in Europe is far more costly than in the past. Thanks to China, so far Americans have been sheltered from the greatest effects of the dollar’s declining value. Our greatest trade deficit is with China. The prices of the goods from China have not risen, because China keeps its currency pegged to the dollar. As the dollar goes down, China’s currency goes with it, thus holding down price rises.
The resignation of Admiral William Fallon as US military commander in the Middle East probably signals a Bush Regime attack on Iran. Fallon said that there would be no US attack on Iran on his watch. As there was no reason for Fallon to resign, it is not far fetched to conclude that Bush has removed an obstacle to war with Iran.
The US is already over stretched both militarily and economically. An attack on Iran is likely to be the straw that breaks the camel’s back.
Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He was Associate Editor of the Wall Street Journal editorial page and Contributing Editor of National Review. He is coauthor of The Tyranny of Good Intentions.He can be reached at: PaulCraigRoberts@yahoo.comPaulCraigRoberts@yahoo.com