The Dems Are Killing the Dollar
While the cognoscenti of the Western financial world is attempting to spin the recent fall in the dollar as a stylish financial mystery play with a journalist based in the Middle East as its star, the Whodunit spin is a red herring: the facts are that the dollar is weak, and getting weaker.
The world is awash in dollars. There is a massive oversupply. We are electronically creating (printing in another era) hundreds of billions of dollars to buy our own T-Bills. Our deficit and spending has soared.
Kudlow, in his column, “Save the Greenback, Mr. President” explains that solution is to remove the excess dollars from the market and to stop “printing so much debt:”
for therapy, the Fed should begin moving excess cash from the economy….And they need to stop printing so much debt from Congress. All this massive spending and borrowing is killing us.
Instead, the Democrats in Congress and the White House are planning more spending: a second spending bill is on the table — ironically tagged as the second stimulus bill, which ought to stimulate the dollar tanking — and of course, President Obama’s $1 trillion health care spending boondoggle.
When town hall meetings are interrupted with shouts of “stop printing money” the jig is up. Note to the White House: in the age of the internet, you cannot hide printing $600 Billion a year from the world.
Until the Federal Reserve stops printing money to buy our own T-Bills, and the Democrats in Congress stop spending on new programs and we lower our deficit the dollar will continue to drop. End of story, no other outcome is possible.
Simply put, the Dems are killing the dollar.