obama economics 101

[pico]

Aside from the moral hazard issue, the key risk with this tactic (cutting interest rates to encourage new debt money creation) is that the central bank exposes the financial system to a currency crisis, as the growth in the money supply spirals out of control due to the need to save the banks from themselves.[58][59][60]
For these reasons, a collapse in confidence in the solvency of the banking system is one of the most complex and difficult policy issues any government can face.
In such crises of confidence, a central bank may choose to save the current players in the banking sector by printing money and inflating its way out of the crisis, thereby debasing the value of the domestic currency.

http://en.wikipedia.org/wiki/Debt-based_monetary_system

[mathdotcom]

who cares if the USD falls, it will stimulate US exports as much as it hurts US imports.

The only worry is that foreigners will stop holding USD as a safe store of value. And I don't think that is a big worry given that every other candidate currency is just as sketchy right now.

[andywend]

What happens when the rest of the world recovers from this financial meltdown and the U.S. is left with TRILLIONS UPON TRILLIONS OF ADDED BARACK OBAMA DEBT?

Prior to the financial meltdown, the dollar was collapsing with people like Warren Buffet shorting it heavily.

The world-wide financial meltdown sent investors from around the world scurrying back to the dollar as a safe haven and investors like Buffet, Gates, Soros, etc, were left with their pants down and sustained sizeable losses (can't say I lost a wink of sleep over it).

The dollar was in severe trouble before the meltdown and now we have Barack Obama plunging our country into a deeper and deeper hole with TRILLIONS being wasted.

Once this world-wide financial meltdown ends, the U.S. dollar is going to get ripped apart and we will all pay the price for Obama's never ending shopping spree.

Obama has managed to get control of most of the major banks and now he is moving on to total government control of our health care system which will no doubt increase the deficit once again and there isn't a politician in congress who is willing to or has the power to stop him.

SCARY, SCARY TIMES LIE AHEAD!!!