North Korea And U.N.

The North Korean Government responded to another failed U.N. Resolution by firing two short-range missiles along the East Coast Tuesday according, to the Yonhap South Korean News Agency. The reported launch came a day after a similar launch and apparently successful test off a nuclear weapon. Yonhap had reported earlier in the day that North Korea had declared part it's East Coast off limits to ships, signaling a new launch is imminent. Finally, the U.N. is a useless organization that does nothing to stop these ruthless dictators around the world. Therefore, when will the U.N. stand up for real justice around the world in place like Sudan, North Korea, Zimbabwe, and Iran. This will never happen because the U.N. is corrupt organization that has had scandal after scandal including the Iraq Oil for Food Scandal and U.N. Sex Scandal in Africa and countless other scandals that have rocked this worthless organization. President Obama is wasting is valuable time trying to pass a resolution that will not be honored or will be deemed worthless by the North Korean Government and it's ruthless allies.

North Korea Nuclear Test "Confirmed"

North Korea staged a "Successful" underground nuclear test close to the Chinese Northwest Border "The State Official Communist Media Said". The South Korean Presidential Office said had earlier said that North Korea had appeared to conducted a nuclear test. The government received a report on a nuclear test having been conducted, Presidential spokesman Lee-Down-Kwan told a briefing. He said Lee-Myung-Bak called a emergency National Security Council meeting Monday afternoon. Finally, this is a serious problem foreign policy problem for President Obama and he must answer the threat by North Korea with strength not weakness.

Declining Dollar And Economy

The news that came out on Thursday that the implied AAA Credit rating of the United States will eventually be downgraded. The dollar was hit hard again on Friday and that could have some serious implications when it comes to stabilizing our economy. What are implications of a weak American dollar. The first problem is high inflation and a perceived greater risk of holding the currency and dollar denoted assets. The greater perceived risk, investors will ask for a higher rate of return. This means that interest rates will be going up in America. The biggest problem is a significant exit of foreign capital from our markets. Therefore, can you imagine conversations between China, Japan and Russia the largest holders of our debt. The United States is forced to pay higher interest rates to attract capital, the economy slows as the cost of debt services increase. The Obama administration may want a weak dollar because it will help domestic production relative to our continued reliance on imports. Therefore, by generating some inflation is a means of devaluing our outstanding massive amount of debt. Whomever, is in debt currently can actually pay back those debts in future dollars that are worthless. Finally, we can stem the decline in the value of the dollar by increasing short term interest rates, that is, Federal Fund Rates currently sitting a 0-.25% will have to go higher. Higher rates means slowing down the economy. Although given the current economic turmoil, the Fed may have to increase the Federal Fund Rate even sooner than they desire and we could suffer through a nasty curse of STAGFLATION. The Obama Administration must find a credible way to protect the value of the dollar. This could be the first step in the downfall of America.