Kudlow, Santelli: Dollar Devaluation Creating 'Façade' Bush/Obama Economic Policies Are Working

Newsbusters ^ | October 31, 2009 | Jeff Poor

[Rufus2007]

Now that the Obama administration is attempting to take a victory lap on the U.S. economic recovery, claiming the $787-billion stimulus passed earlier this year was what did the trick, despite a cost of $160,000 per 'stimulus' job, as ABC's Jake Tapper pointed out, it has come at the cost of the U.S. dollar.

Since then, the stock market has rebounded nicely. The Dow Jones Industrial Average (DJIA) is off a March low of 6,547 points, even topping the 10,000-mark recently. But what has caused this nearly 50-percent jump? According to CNBC's Larry Kudlow - loose monetary policy by the Federal Reserve, with low interest rates, has made it possible for the markets to rise, with the 'loose' money going into the market.

"The funny thing is, Steven, it has gone into stocks - I mean the stock market guys ... there's no real multiplier for the economy, right?" Kudlow said on his Oct. 30 CNBC program. "But it has gone into stocks and the stock market crowd wants to see the Fed to keep pouring the money in no matter what happens to the U.S. dollar."

...more (w/video)...

[Ghost of Philip Marlowe]

“And it’s not a matter of political affiliation, as Kudlow explained. Both President George W. Bush and Obama got it wrong. Who got it right? Presidents Bill Clinton, a Democrat, and Ronald Reagan, a Republican.”

Slick Willy should get NONE of the credit. He created the housing bubble after the tech bubble burst. And he balanced the budget by slashing the military, which Bush had to rebuild after 9/11.

And whatever good Slick Willy did was because of 2 turns of the screw: 1. His insanely LEFTIST policies early on brought the Republicans to power in the houses, and 2. Monica Lewinsky forced him to run to the middle.

Make no bones about it, if it hadn’t been for losing the house and his lack of self-control, Slick Willy would have tried to implement all of the same socialist policies that Obammie the Commie is attempting.

[Recovering_Democrat]

I’m not deflecting blame, I am reciting HISTORY. Bush’s mistakes were evident and not defensible...AND he used a fraction of the printing press idea HUSSEIN has used.

[dennisw]

The USD strengthened last week and sure enough the stock market went down. So did gold and silver. Stronger USD implies higher interest rates now or in the future which also hurts gold and the markets in the here and now

[advance_copy]

...all causing the destruction of the American economy deliberately

DING DING DING... We have a winner!

[SkyPilot]

Since then, the stock market has rebounded nicely.

COMPLETE smoke and mirrors!

The people pumping (and pimping) for the stock market are whistling through a grave yard, and they know it. They just are hoping no one realizes it, because if people did, the market would fall like crazy.

You know why the stock market hasn't collapsed already? Free money from the Fed with no risk. That ponzi scheme won't last forever, and when this house of cards comes down, it will make September 2008 seem like a walk in the park.

The stock market rally is being inflated by easy Federal Reserve money

Stock Market Forecast S&P500 1400 by End 2010, and 400 by 2014

And this.....a second mortgage shock.

The Housing Collapse of 2010 Will Be Worse Than 2008

[SkyPilot]

The Alt A and Option ARM mortgages start to re-set in huge numbers in 2010 - and this will continue through 2011. The subprime fiasco will pale by comparison.

Combine this with the historical trends from the 1929 crash. The US economy is in real danger of going off a cliff right now. If China calls our debt, the collapse could literally occur overnight.

[dennisw]

So buy gold guns and canned beans.... I agree the outlook stinks because we forgot how to produce instead we relied on shuffling papers and speculation

[April Lexington]

Just remember... FDR was elected FOUR FRIGGIN TIMES by the American Idiocracy who bought his BS.

[April Lexington]

Slick Willie was the luckiest president who ever lived!

[TomasUSMC]

Bush’s $700B bailout only “spent” 1/2 of that amount...and held BACK the other half until the next administration.....Hussein blew through that, added, another $787B on top of it, and THEN submitted a $4 TRILLION budget....all before he adds on OBAMACARE AND CAP’N’TAX!

I blame Bush for $350B....but the rest of it falls on HUSSEIN.
/////////////////

Needs to be tatooed on the inside of every libs eyelids.

[dalereed]

” It seemingly scared the sh*t outta Bush and forced his hand into the initial “stimulus”, thinking there was going to be economic collapse.”

That’s what was and still is needed!

The sooner the better.

[sickoflibs]

RE :”Just remember... FDR was elected FOUR FRIGGIN TIMES by the American Idiocracy who bought his BS.”

Obama wont be elected three more times. One more time max. I am thinking 2010 not 2012. 2012 is too far away. It’s like those thinking of 1996 back in 1993. By 1996 everything has changed, Clinton was the hero, Newt was the demon starving kids and shutting down the government (voters perception) .