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Jury hears Trump and Cohen Discussing Hush-Money Deal on secret recording; Nature-based solutions help solve Mississippi River Delta problems; Public lands groups cheer the expansion of two CA national monuments; 'Art Against the Odds' shines a light on artists in the WI justice system.

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President Biden defends dissent but says "order must prevail" on campus, former President Trump won't commit to accepting the 2024 election results and Nebraska lawmakers circumvent a ballot measure repealing private school vouchers.

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Bidding begins soon for Wyoming's elk antlers, Southeastern states gained population in the past year, small rural energy projects are losing out to bigger proposals, and a rural arts cooperative is filling the gap for schools in Pennsylvania and West Virginia.

Threat of Iran War Hurting Weak U.S. Recovery

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Monday, March 26, 2012   

ALBUQUERQUE, N.M. - Concerned that Iran may be building nuclear weapons, some in Congress are pressing the U.S. to bomb Iran's nuclear facilities or help Israel do it. However, economists warn that even the threat of war is hurting economic recovery.

Economist Mark Weisbrot, co-director of the Center for Economic and Policy Research, says the standoff in the world's most important oil-producing region is responsible for driving up the price of crude. Any conflict could damage the frail European economies, he says, which in turn could affect what is still weak growth in the U.S.

"We're only growing 1.8 percent this year. The threats against Iran, the threat of war, could easily tip the U.S. economy into a recession."

Gasoline in New Mexico is averaging around $3.68 a gallon, an increase of $.37 in just a month.

Economists cite numerous factors behind the price of gasoline. A bottleneck at refineries and the exporting of gas to Europe are two of them. However, Weisbrot calls the threat of war the single reason crude oil has gone up $6 to $10 dollars a barrel since the beginning of the year. Since it's a global market, he says, drilling or building pipelines in the U.S. would not make much difference.

"Any kind of oil production here or in Canada would have very little impact. What we're looking at really has nothing to do with whether the president wants to drill anywhere or build a pipeline."

He says the European economies are in an even more vulnerable situation. Rae Dougher, senior economic advisor with the American Petroleum Institute, agrees.

"Their refiners are not as flexible as U.S. refiners, and it has meant that their price of crude has been much higher than ours."

Dougher adds that there would be great volatility in the market if tensions increase. She says Iran has been threatening to shut down the Strait of Hormuz, the route to market for 35 percent of the oil shipped by sea.

Estimates vary widely on how far Iran may be from producing nuclear weapons. It is even uncertain if that is the regime's intention. Most experts agree that Israel already has nuclear weapons, although the Israeli government refuses to confirm or deny it.



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