Crude oil futures soared past $145 a barrel for the first time ever Thursday before a bounce in the U.S. dollar cut into the gains.

Be Warned, good people. Regardless of any of the happy lies flowing from the mouths of pretty much all our politicians as well as the wanna-be contenders, it’s going to get a hell of a lot worse. The world has ridden the crest of the prosperity wave for a long time and now that wave is crashing on the rocky shore, as all waves must.

The Fed has run out of fixes for inflation and can now only issue statements designed to slow it down. It can’t actually do anything any longer, and it’s running out of statement material as well. The interest rate can’t be lowered more than the 2% it’s at now, to keep mortgages payable so people can afford housing. Raising interest rates raises loan costs and sucks money out of paychecks, which reduces sales of homes and goods, which puts people out of work, which results in recession/depression. This would ultimately reduce inflation except that now, the current inflation is being fueled by the rising cost of oil, from which comes all of our plastics and almost all of our fuel to transport all our goods.

The rise in oil prices is due to the devaluation of the dollar. When oil is $50 a barrel and then the value of a dollar drops to half, oil goes up to $100 a barrel to compensate and it does it RIGHT NOW. Wages and most goods take longer to react since it takes awhile for the increased costs to be felt.

Since the world is tied to the U.S. economy and our dollar, the lessening of the dollars value has an added impact beyond the increasing price of oil. China’s economy, for instance, is slowing down, since they sell so much to us. Our devaluating dollars that we pay them with, buy less oil and raw materials as each day passes. So they must raise prices to us. Higher prices mean that we can afford to buy less because our wages haven’t caught up, which means that more companies have less income and put more people out of jobs because of it. 62,000 more jobs this past month in the U.S.. This rising unemployment bounces back to the other countries, like China, whose economic growth is dependent on our trade, and they start laying workers off, too, which creates recession/depression in their countries.

The original cause of the devaluation of our Dollar is simple. Printing too much. The global economy is based on international credit and the reality is that only about 5% of the money in circulation is paper and coin. All the rest is electronic and exists only on computers and notes in ledgers, so creating more money is a snap. The money supply of the U.S. can be doubled or tripled literally in seconds on a computer keyboard. This sort of thing can raise havoc with a national credit rating, and it has for us.

In order to finance the horribly expensive war in Iraq, our government has created the money out of nothing. The longer this has gone on and the more money that’s been created, the less that money is worth because our credit has a spending limit the same as you have on your credit cards, in the international market place.

Now things are out of control. It’s like a snowball rolling down the mountainside. The farther it goes the bigger it gets. This is the whole purpose of our system of Checks and Balances in our government that George Dubya Bush has completely violated, and this is why the snowball has become an unstoppable juggernaut. Our government is supposed to be financed almost entirely by taxes. As corporate profits diminish and employees are laid off, government tax income steadily decreases. Yet our government continues to escalate its spending, by both borrowing and increasing the money supply. We’re making less and spending more. No one can keep that up for long, and no nation, either. We’re about to crash.

For some time now I’ve been watching how both major parties politicians, House and Senate, are grabbing off all they can get instead of doing their elected jobs, and it finally dawns on me, why. Just now. This is partly why I blog, as digging into this stuff always makes things come clearer. They’re rats abandoning the ship, and they’re gorging themselves as much as possible before they jump off at their own safe harbor.

This is a bad sign, Folks. A real bad sign. Before, I just thought it was a mutual feeding frenzy before the Democrats take over again, but the Democrats are just as much into it as anyone else. They’re all doing it with utter disregard for their political futures. That’s a black omen of things soon to come. Gird your loins, kiddies. Load the old blunderbuss and stock up the pantry, I do believe Hell is coming to breakfast and the Devil is going to be hungry.

U.S. workers “unexpectedly” lost 63,000 jobs in February. For the 63,000 workers that must have been unexpected, alright. Last month, January, 22,000 jobs were lost plus the jobless rate actually dropped to 4.8% at the same time as many people gave up looking for work because of the shrinking labor market.

The way this is figured is that even though people are finding jobs, so many jobs were lost at the same time that the net loss is 63,000 for the month. Couple that with the crashing housing construction market, the mortgage industry collapse, the loss of much of our manufacturing to China, the dramatic rise in oil prices that keep pushing the value of the dollar lower and lower, the inflationary trend because of that as all prices continue to increase, and it’s obvious that we’re plunging into a recession that may well turn into a depression.

“All the lights are flashing red,” said Nariman Behravesh, chief economist at Global Insight Inc. in Lexington, Massachusetts, in an interview with Bloomberg Television. “We’re in a recession. I don’t think there is any doubt about it at this point.”

The fickle finger of blame can be pointed at government incompetency, and it would be correct. However, the American public has to bear the burden as well. We flocked to Wal-Mart and every other store that offered us goods made in China at cheaper prices than we could produce them for, here, knowing that our industries were shutting down because of our stinginess, our perfidy.

Now all that money we saved had better be in the bank, because we’re going to need every dime of it in the days ahead. Nice work, all you sheep. You’re not that stupid, you saw this coming, you know you did. You just chose to go baa and keep on eating the grass.

There are untapped oil and gas reserves in Somalia, very possibly huge ones.

U.S. forces are in Somalia and it is claimed that a U.S. Air Force AC-130 plane, hunting for Islamic Al Qaeda militant hideouts, bombed three targets, including two houses.

Somalia is probably the single poorest nation in all of Africa and the Middle East. They’re so poor that the people can’t afford to eat, let alone buy weapons which are horribly expensive by their standards. After all, an AK-47 costs around $1500 and the average income for a Somalian is less than $1000 a year. You can’t buy clothes, food and provide shelter, and hope to have anything left over for $1500 AK-47’s, not to mention the cost of ammunition. So where are the guns coming from that are being used by Islamists to attack the government?

Well, let’s see. Who else is in the immediate vicinity, is Islamic, produces oil, doesn’t want any competition in that area and has made that abundantly clear? Who else but Saudi Arabia. The same people who destroyed the World Trade Center, who kicked us out of their country, who will kill you for bringing in a Bible, and who have cut back production of oil to keep the price dramatically inflated, which is wrecking our economy. Just a small list from their litany of crimes.

This is the same problem we’ve had in Iraq. Most of the muslims we’ve been fighting there are Saudis. It takes a huge amount of money to conduct a war, and those poor Iraqi citizens don’t begin to have that sort of cash. They’re being funded primarily by the Saudis, who don’t want us to have access to Iraqs oil. The Saudis are interfering with us and attacking us anywhere they can to prevent us from getting oil from anywhere except them.

This is why we have a military presence in Africa, focused in on the oil-producing areas, and why we’re going to have to fight for every square inch of it that we can gain. At the same time, China is already exporting oil from Sudan, Chad, Nigeria, Angola, Algeria, Gabon, Equatorial Guinea, and the Republic of Congo, as well as the Middle East.

Even at $100 a barrel, the price of gasoline in China is a third that of Europe and Japan where it’s heavily taxed. With a 1.3 billion population and a rapidly expanding economy, China is now #2 behind the U.S. in oil consumption. However, the increases in the cost of oil affect all economies, and prices for goods from china are rapidly on the rise.

If China can fight off the imported Saudi insurgents and lock in their African supplies, and if we can do the same, dependency on Middle East oil will slacken dramatically. For this reason, the Saudis will continue to attack, secure in the knowledge that if we stop them, we stop the flow of Mid-East oil. Since neither we nor China wants to fight each other, our separate African “territories” are already being demarcated and in this arena we then have the dubious pleasure of being both allies and competitors.

Meanwhile, the price of goods on the world markets is rising, while our own manufacturing is declining because of outsourcing. This has lead to increased unemployment, which causes the average wage to decline as people take lesser paying jobs to keep eating. With the rise in costs, the comparable value of the dollar declines, so the lesser wages buy even less. This is the road to poverty and America is on it.

There is only one genuine solution to this problem, which is to invade Saudi Arabia and take over the oil production. By continuing the share of oil exports to those already getting a percentage, and by selling it at a reduced price, we would have no problems with China. I would not be surprised if this hasn’t already been discussed between us and the Chinese. We both need the oil and we’re both getting robbed by the Saudis. This would have a salutary effect on the global terrorism problem as well, since it’s funded primarily by the Saudis, it would let us and China quell our attackers, bring peace to Africa and thereby free up the African oil fields for production.

This is turn would finally bring development and prosperity to Africa.

The financial power of oil is behind the rise of militant Islam, and that also is the product of Saudi Arabia. The purpose of the Saudis in pushing militant Wahhabist Islamic terrorism upon the world is solely to gain access to the worlds oil. The Saudi royals don’t even like Wahhabism, it’s a constant threat to their personal power, but it’s a cloak they can hide behind and a powerful tool they use very effectively in their quest for control of the oil.

First, spread Fundamental Islam by tying it to the dream of a new Islamic Empire. Then tell the people they have to repel the Infidels, that’s us, first. That it’s their Sacred Duty to do so. To die for Allah. But they’re not. They’re dying for oil and they have no clue.