Wapokoneta Daily News - "Strengthening Dollar Could Stabilize Prices"

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Wapokoneta Daily News - "Strengthening Dollar Could Stabilize Prices"

After listening to a presentation from an American businessman, an Ohio Congressman says strengthening the dollar on the world market should help with inflationary pressures on goods chipping away at American's paychecks.

"I have a real concern for families across the 4th District and across the country and that is the cost people have to pay for transportation, or gasoline prices," U.S. Rep. Jim Jordan, R-Urbana, said in a teleconference last week. "Mr. (Steve) Forbes argued that inflation and the speculation of inflation accounts for a huge increase in the price of oil, and he said it may be time for the Federal Reserve to look at getting the dollar stable again, which would help with the price at the pump." For the government to gain a greater control on inflation, Forbes supports a policy where the Federal Reserve tightens the flow of money into the market and starts "soaking up some of the excess dollars."

He would also like to see President George Bush create a strong-dollar policy.
The freshman legislator said the Federal Reserve needs to restrict the flow of new money into the system through the loan rate to banks. At the same time, the Congressman warned against raising taxes on oil producers because the tax would be filtered down to the price at the pump.

"The policies that Congress enacts are poor policies," Jordan said. "If you have a majority of Congress supporting raising prices on domestic oil producers, who (Congress) does not allow to drill offshore and thus restricts our supply of oil, that is harmful to the price and is hurting every single family across this country.

"We have to have a short-term energy focus to increase domestic supply and to take a look at what Mr. Forbes suggested in trying to make the dollar more stable — instead of increasing the money supply we need to focus on stabilizing the dollar."

Forbes also discussed with members of Congress implementing a flat tax, privatizing Social Security, and reforming health care as ways to stimulate economic expansion.

Jordan addressed the upcoming vote on the Colombia free trade agreement, and the political games being played with the traditional 90-day period for Congress to pass or to reject the proposal.

"What the Democrats are trying to do here is totally wrong," Jordan said. "Right now, our markets are open in Colombia, and passing this agreement would allow their markets there to open up to our goods."

He said House Speaker Nancy Pelosi, D-Calif., rewrote the rules on fast-track passage of trade bills by attempting to derail the system by calling for a vote on whether or not the fast-track trade agreement hits the floor for a vote.
In the past, the president would send the legislation to Congress, who would vote within the three-month window.

Jordan said the move would harm American businesses.

"We need to remember that Colombia is trying to open up their markets to our goods, to help companies such as Proctor & Gamble and a whole host of companies in our district," Jordan said. "People's jobs depend on these companies' ability to sell their goods around the world. Trade means opportunity, and opportunity is a good thing for American entrepreneurs, for American small business, and American farmers who export their product throughout the world."

Jordan also said Americans must realize "Colombia is our friend" and is a "country right next to Venezuela and (President) Hugo Chavez."

The relationship between the two countries and between Chavez and Bush has been bitter and rancorous since the two men took office.
Those issues must be in the minds of Congressmen as they consider their votes on this bill, the Urbana-based legislator said.

Jordan addressed the recent testimonies given before the Senate by Gen. David Petraeus, commander of U.S. forces in Iraq, and Ambassador Ryan Crocker, U.S. ambassador to Iraq, and the representative's continued support for the surge initiated last year.

"One of the most tellings things is how far we have come in the past year — the surge was and has been very, very effective and helpful," Jordan said. "The general said that it is in our best interests, it is in our national interests that al-Qaida does not have a resurgence in the Arab world. It is important that we prevail there."

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