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Will Obama be the President who loses the Dollar? 20 March, 2009

Posted by David Anderson in Economic Policy.
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Critics who do nothing but whine and complain bash the President for going on the Leno show. If they want to complain, it should be that the President does not get tougher questions than Leno’s from the regular media. What about the potential dumping of the dollar as the world’s reserve currency? It is rumored that the administration may even be sending signals of support for the move because “it (being the world’s reserve currency) makes policy difficult”. The implications for American businesses and farms could be significant. It could be very significant for our future debt funding. Is the Administration considering an inflation option?

This is the most disturbing economic and foreign policy development to date in the Administration. Why not just support Russia’s global currency? Is that next on the agenda? Will someone even ask this in next week’s press conference?

What happen to restoring U. S. leadership in the world? We seem to taking an attitude of tell us what to do. Help us out because it is to hard to make the sacrifices of leadership. We ask would you please take prisoners from Gitmo? We may release terrorists in our country if you do the same. We say could you please send a few troops to Afghanistan because we aren’t sure we want to make the investments. Now we are saying that we aren’t sure that we can keep our dollar strong. The world likes to test a new President. Here is one American hoping he will pass the retest.

Believe only half of what you hear 28 February, 2009

Posted by David Anderson in Budget, Economic Policy, federal.
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The administration is proposing the first trillion dollar deficits. They are claiming that for the first time the budget is honest. I would agree that it is more honest in some respects than previous budgets, but it is rosier than most in other respects.

The administration is assuming that we will be in economic boom within two more years. In three years it is projecting 6.2% growth. In every year it is far more bullish than private or Congressional Budget Office (CBO) numbers. They claim to be putting the war on budget which seems like a bad idea, but they are only putting some of the war on budget and inflating the cost of the war. They projected current troop levels for 10 years in Iraq even though we have an agreement to be out in 3. They then called the change a cut even though the number wasn’t originally in the budget.

Think about it. They added an extra trillion dollars to the budget then cut it out and claimed to have found huge savings. In this way they can cut the deficit in half even though it is larger than fiscal year (FY) 2008.

In fairness, no one has ever been handed a budget so out of whack. The President has to make do with unprecedented debt, deficits, and the worst decline in GDP in 27 years.
My point is not that he doesn’t have tough issues to handle while preparing a budget, but that he doesn’t need to hype the effort with unnecessary claims. We will judge it upon its merits or lack thereof. We can save our fantasies for football.