Dick Morris and  Eileen McGann

But the economy cannot afford to pay these higher prices. Consumer demand, which accounts of three-quarters of gross domestic product, is already stagnant. With inflation, it will drop. Then, unable to recoup their costs, vendors will be forced to raise prices even higher. An inflationary psychology will take hold of the economy. Higher interest rates will be needed to break its hold, forcing us into yet another recession, this one fully courtesy of President Obama.

For months now, political pundits have wondered if the economy would improve, helping Obama's re-election chances. It now appears that the exact opposite is likely and that his re-election chances will be washed away by a massive flood of inflation as a consequence of his misguided policies. Obama will doubtless blame oil companies and speculators for the fuel-price increases, but his role in encouraging instability in the oil-producing regions of the Middle East is apparent enough.

He put the demand of the Egyptian people for political change ahead of America's need for financial stability. He was so enraptured by being "on the right side of history" that he forgot about his role as the head of our economy and its vulnerability to the very instability his policies fanned.

Dick Morris and Eileen McGann

Dick Morris, a former political adviser to Sen. Trent Lott (R-Miss.) and President Bill Clinton, is the author of 2010: Take Back America. To get all of Dick Morris’s and Eileen McGann’s columns for free by email, go to www.dickmorris.com