The ever-declining dollar.

"The first panacea for a mismanaged nation is inflation of the currency; the second is war," observed Ernest Hemingway. "Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists." The Bush administration's agenda of perpetual war and unchecked spending is sowing the seeds of national ruin.

"Every day, foreign individuals, companies and governments plow $1.5 billion into U.S. stocks, Treasury bonds, factories, companies and real estate," noted the January 15 Wall Street Journal. "This money is the economic lifeblood of America. It helps the U.S. expand and modernize factories, secure mortgages, build highways--even fight the war in Iraq. Two decades ago, Americans sent more money abroad than foreigners invested here. But since then, the U.S. has essentially been living beyond its means, consuming more than it makes, investing more than it saves by borrowing from abroad."

"In the past few months," continued the Journal, "the dollar has been failing against the euro, the Japanese yen and the British pound. It's a symptom of waning demand for the U.S. currency, an indication that foreigners may be growing less enthusiastic about investing in the U.S. Were foreign investors to flee the U.S., it would depress the dollar further and faster. Reduced foreign purchases of U.S. stocks could cause the market to tumble. Reducing foreign purchases of U.S. bonds could boost the interest rates set in bond markets. If the foreign flight were severe enough, it could push the U.S. back into recession."

Given the unprecedented profligacy of the current Republican-led administration and Congress, it's almost certain that the dollar's value will continue to plummet. James McCormick, head of global currency research at Lehman Brothers, told the Agence France Presse, "The foreign exchange market is being very clear that what matters is whether policymakers care about what's going on." Simon Derrick, head currency strategist for London's branch of the Bank of New York, told the AFP that "the new year brings with it little prospect of respite for the dollar, given continuing fundamental worries over the ability of the United States to finance its current account deficit at current exchange rates."

Adding to the trouble is the Federal Reserve's determination to keep interest rates at historic lows in order to encourage consumer spending. Low interest rates, notes the AFP, "are making it difficult for the country to attract capital to finance the current account gap."