There can be not doubt that not only the United States, but the rest of the world is facing a recession if not a depression. Events of the past two days only make this more of a certainty. Every aspect of our economy is suffering and thereby so is every facet of our society.

Oil prices have soared to a new record high of $114 a barrel. Why? Because the dollar has once again fallen and the euro has risen. This not only affects every one who owns a car, but everyone who buys consumer good, because those goods are transported mostly by truck and the cost of diesel fuel is even higher. Just this morning I paid $3.39 for regular gas and the diesel was at $4.49. Just why does the dollar have such an impact on the price of oil? Let me put it this way. If you had a choice to invest in either the dollar or oil right now which one would you choose? If you said oil, you are in agreement with a majority of investors. The dollar is just too unstable and investors are dropping it like a hot potato.

In the past six months alone, the wholesale prices for agricultural products have risen at the rate that it would be expected to rise over a 25 year period. It is not the farmers fault. Their operating costs are rising as well. Of course, not all of the increase can be blamed on the rise in oil prices. There have been freezes in the citrus growing areas and droughts in others and that also plays a big part in the overall economic picture.

As for the housing market, it is just about dead in most parts of the country. People are just afraid to make a move unless it is absolutely necessary. Every town, every village, every city has block after block with House for Sale signs. And more appear every day. Many of the homeowners who have their homes for sale are not doing it because they want too. They have been caught in the mortgage crisis and face foreclosure, which by the way is also increasing each and every month.

This will not be an easy fix. it took time to get to this point and it will take time and careful financial planing to get us back on the right track. Republican Presidential candidate John McCain is calling for a moratorium on the gas tax for the summer months and that will help in the short term. But that means that federal, state and local governments will have a big short fall in revenue. The best solution, until Congress takes some positive action that the President will sign, is to use less gas. Don’t drive locally, walk. Take the bus, car pool. I remember a few years back when there was a transit strike in New York City seeing people bicycling to work over the Brooklyn Bridge. Who says we can’t do it now?

Americans are the most resourceful people on Earth. Now if the government be just as resourceful, maybe we can begin to turn around, give people the confidence to buy a new home, cut back on our dependence on oil and make people feel it is ok to purchase consumer products, which will cut back on the number of jobs lost, which also has been increasing every month since January. Yes, it is a vicious cycle, with one problem feeding off of another. Always has been and always will be.

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