The Euro has risen.  The dollar has fallen.  This has had a chilling effect on the American economy.  According to the U.S. National Debt Clock,  America's debt increases $1.44 billion a day!  This has opened the door for other countries to own America's debt, like China.

With the declining dollar and the U.S. economy in a recession, Americans are facing greater interest rates on their debts, rising fuel hikes, and a more expensive overall cost of living.  This says nothing about the money that everyone sees deducted from their paychecks in the form of state and federal taxes collected by the Internal Revenue Service.

In "Why the Emperor Has No Clothes," Andre Gunder Frank writes about the decline of the dollar in relation to U.S. debt.  "Uncle Sam's debt to the rest of the world already amounts to more than a third of his annual domestic production and is still growing.  That alone already makes his debt economically and politically never repayable, even if he wanted to, which he does not.  Uncle Sam's domestic, e.g. credit card, debt is almost 100% of gross domestic product (GDP) and consumption, including that from China."

With 1.00 EUR worth 1.55 USD, the greenback cannot command respect in the global market.  This has caused large increases in North American gas prices.  Former U.S. Government Accountability Office (GAO) Comptroller David M. Walker suggested just days ago that America "needs a wake up call" regarding debt management.  Walker said, "We are standing on a burning platform," adding that the "U.S. has only five to 10 years to get its budgetary house in order or risk bequeathing a less-prosperous nation to its children and grandchildren."

Walker told the University of Texas at Dallas School of Management's Institute for Excellence in Corporate Governance that the first rule of holes is, "When you are in the hole, stop digging."  Like Frank, Walker pointed out that, "much of that debt is held by lenders in foreign countries, giving them undue sway over U.S. affairs."  In order to bring about the changes needed to turn this situation, we need new leadership.

The current administration of George W. Bush and a number of organizations, like Halliburton have made billions in government contracts related to the Iraq and Afghanistan wars.  This money has included bonuses for Halliburton executives, the company that was once run by former Chairman and CEO, and current Vice President Dick Cheney.

Truthout.com chronicles how Halliburton has taken a greedy share of the U.S. economy in fees and bonuses through no-bid contracts with the Bush Administration.  On April 21, 2008, Halliburton announced its first quarter earnings were a whopping $584 million.  These contracts are open-ended in nature, so companies like Halliburton, also known as KBR, can charge bonuses at the backside of deals. Because of this conflict of interest, Halliburton finally announced on April 5, 2007 that it had finally broken ties with KBR, "which has been its contracting, engineering and construction unit as a part of the company for 44 years." Clearly it were these kinds of realities that made, now former GAO Comptroller David Walker hit the road.

A BlueRidgeNow.com article suggests, "The government cannot simply print money to meet these obligations, and it is impossible to increase taxes enough to meet this colossal debt.  Massive spending cuts are in order.  Yet even eliminating the entire Pentagon budget would make not a dimple of a difference in the fiscal disaster that lies ahead."  

Even AlJazeera Magazine is contemplating America's demise.  A recent article notes:  "And the Iraq War is at the heart of two alarming trends that are likely to have a negative impact on America's position in the world:  The demand for oil is rising while the supply is declining, and the demand for the U.S. dollar is declining while the supply of dollars is rising."

There is a clear connection between this grave financial state of affairs and Halliburton administrative costs passed on to the government under a contract to restore Iraq's oil industry.  This amount is unusually high, according to critics familiar with the contract.  This translates into the enormous deficit that leading economists around the world are reporting.

Another truthout.com article explores an October 24, 2006 Inspector General Report overseeing the spending in Iraq.  It found that, "at least 55 percent, or $163 million, of $296 million in total costs rung up by Halliburton unit KBR went to expenses such as back-office support, transportation, and security.  That percentage was significantly higher than it was on work by other firms in Iraq, and experts said it is far above what is typically found on a government contract."

The report also addresses the overspending issue:  "Under the contract's terms, KBR is reimbursed for its costs and then receives a percentage for profit on top, an arrangement that critics contend has given the firm an incentive to run up its bills."

With the establishment of these no-bid contracts and Homeland Security, numerous businesses were able to cash in on the government, weakening the dollar and throwing our current economy into a recession, which further hurts the U.S. currency.  Take the news today that the Federal Reserve  plans to drop the national interest rate.  However, the economy will continue to fester until some real reform is put in place.

Tough choices on spending and entitlement programs could improve the plight of the dollar.  No single person can do it, but instead a group that has the courage to make tough choices...and relay their vision to everyday Americans who are struggling.