Is it really this bad?

[hndog609]

Is it really as bad as this makes it sound or is this sensationalized a bit? If accurate we could be in real trouble. Two things that lept out at me:

Of Bernanke
"He's in a crisis worse than the meltdown ever was," said Peter Schiff, president of Euro Pacific Capital. "I fear that he could be the Fed chairman who brought down the whole thing."

"The stimulus is what's toxic -- we're poisoning ourselves and the global economy with it."

Dollar loses reserve status to yen & euro

Comments? Particularly from those with a better "big picture" grasp than I? (I'm no dunce but I'm no economist either)

 

[volinbham]

Don't sell yourself short hndog; you're a tremendous dunce...

(can't pass up a chance to bring Caddyshack lines to any thread).

 

[droski]

i dont' think it really makes much of a difference and i hardly see how bernake is to blame, but it doesn't help it when obama's economy people are saying the week dollar is good for america.

 

[hndog609]

Don't sell yourself short hndog; you're a tremendous dunce...

(can't pass up a chance to bring Caddyshack lines to any thread).

Hey wait! That was "slouch"!

(Not much defense as I am pretty slouchy at several things, including golf, but not a dunce!)

 

[hndog609]

i dont' think it really makes much of a difference and i hardly see how bernake is to blame, but it doesn't help it when obama's economy people are saying the week dollar is good for america.

What, if anything, do you make of this particular observation made in the piece?

"After printing up trillions of new dollars and new bonds to stimulate the US economy, the Federal Reserve chief is now boxed into a corner battling two separate monsters that could devour the economy -- ravenous inflation on one hand, and a perilous recession on the other."

 

[lawgator1]

I understand the basic theory that more spending weakens the dollar, increases the deficit, and can cause inlfation if rates are not raised to keep a lid on it.

But given the remainder of the size of the budget even without the stimulus, I guess I'm having a hard time understanding why the stimulus is the culprit, as opposed to reckless spending, generally. And, all of that of course assumes that revenues do not increase as the economy recovers (whether fueled even just in part by the stimulus.).

 

[droski]

inflation is years away. at that time either we have to significantly raise taxes on the rich or cut govt spending or inflate our way out of it. i'll give you one guess as to what road obama will take.

 

[GASOUTHERNVOL]

instead of plugging the hole in the sinking ship, our administration is too concerned with dumping the water out and pointing blaming who put the hole instead of trying to fix it. Meanwhile the chinamen and europeans pass us by in a speedboat.


HOPE AND CHANGE!! right?

 

[droski]

I understand the basic theory that more spending weakens the dollar, increases the deficit, and can cause inlfation if rates are not raised to keep a lid on it.

But given the remainder of the size of the budget even without the stimulus, I guess I'm having a hard time understanding why the stimulus is the culprit, as opposed to reckless spending, generally. And, all of that of course assumes that revenues do not increase as the economy recovers (whether fueled even just in part by the stimulus.).

the stimulus massively increased the gov't deficit. to levels where a lot of countries went "oh crap"

blame bush all you like, but obama's spending put it over the top for a lot of international investors.

 

[hndog609]

I understand the basic theory that more spending weakens the dollar, increases the deficit, and can cause inlfation if rates are not raised to keep a lid on it.

But given the remainder of the size of the budget even without the stimulus, I guess I'm having a hard time understanding why the stimulus is the culprit, as opposed to reckless spending, generally. And, all of that of course assumes that revenues do not increase as the economy recovers (whether fueled even just in part by the stimulus.).

I'm assuming the former is being considered as "exhibit A" of the latter.