First off, the Wall Street Journal published an in-depth piece today about the need to strengthen the dollar.  As the Journal points out,

Dollar weakness has contributed to soaring commodity prices that have walloped U.S. consumers just when their spending is most needed to offset the housing slump. Oil alone has climbed to $110 a barrel, from $70 in August, even as the International Energy Agency has slashed its predictions for global oil demand. The commodity boom is the result in large part of the Fed’s weak-dollar policy, and it may have tipped the U.S. into a recession that could have been avoided.

The question remains - what can be done?  From my end in Congress, the Journal advises:

In a better world, Congress and the White House would also help with a fiscal growth agenda, such as a marginal rate tax cut.

This is something I agree with totally and believe is needed.  Tax rates, from marginal to capital gains, are far too high.  Government spending continuing to explode and such spending crowds out private investment.  This in turn forces the Fed to print money or borrow, making inflation a real threat to economic stability. 

Election 2008 CAN change this.  As I recently pointed out on the Bob Lonsberry radio show, my record on reducing taxes, cutting (really cutting…not just slowing growth) spending, and advocating smaller and smarter government is unmatched in this Congress.  (It may shock some to know I have a better anti-pork spending record than Ron Paul)  What we need to do is ensure we elect more people with that record.  Republicans have nearly 30 retirements in the House and good candidates running in many open seats. 

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On a different note, independent journalist Michael Totten is always worth reading.   Totten has spent years in Iraq and writes an amazing piece about the rebirth of Fallujah. 

That said, Fallujah’s worst days are likely behind it. “The al-Qaida leadership outside dumped huge amounts of money and people and arms into Anbar Province,” says Lieutenant Colonel Mike Silverman, who oversees an area just north of Ramadi. “They poured everything they had into this place. The battle against Americans in Anbar became their most important fight in the world. And they lost.”