Wake up, America! Markets Jolted by Oil Surge and Worries Over Slowdown - New York Times

Markets Jolted by Oil Surge and Worries Over Slowdown - New York Times

Oil prices approach $100/barrel on nothing but speculation and fear - prompting overreactions to relatively minor fluctuations in supplies. But what we are really seeing is the convergence of some long-term problems that have been looming over the horizon for years - but largely ignored:

- A weak dollar, which has been embraced to date by the Bush Administration as a way to lower our trade deficit;

- The sub-prime mortgage crisis, the impact of which will be felt it seems for at least another year or two;

- Peak oil and the approaching moment when global demand for oil will surpass supply. The oil market's jitters are, in part, due to the acknowledgement by more and more experts and traders that this moment is just around the corner, if not already here;

- A $9 trillion federal debt that ties the hands of the government when it comes to fixing major problems, responding to economic crises, or investing for the future; and

- The inevitable moment when China's willingness and/or ability to endlessly help finance that debt will end.

So what will it take for us to finally wake up and do something serious about these problems? When will our "leaders" finally start leading?

Is there anyone out there? Hello???