Obama's Secret Jobs Plan

[kpete]

Obama's Secret Jobs Plan

by Simon Johnson

Barack Obama Pete Souza / The White House The dollar plunges! How scared should we be? Economist Simon Johnson says not as much as you think—it’s part of Obama plan to restart the manufacturing sector and win the midterm elections.

The dollar’s value plunged Tuesday, while gold simultaneously hit a record high ($1,045 per ounce). You might think this would worry the administration and send the Treasury secretary to the microphones in an attempt to head off further collapse in the currency. Do the darkest days of the Carter administration loom again, with inflation and unemployment both rising, apparently without limit?

Far from it—the last few weeks of dollar depreciation is an amazing stroke of luck for the Obama administration, admittedly facilitated by their adroit maneuvering in the corridors of high international finance. If it lasts—and they need some more luck—this could save the midterm elections for the Democrats.

The near-term causes of the latest round of dollar decline are obvious. Australia’s central bank raised interest rates slightly on Tuesday. By itself, this would not be an exciting development, but it comes fast on the heels of the G-20 Pittsburgh summit in which all participants (including Australia) seemed to imply that “tightening monetary policy” (i.e., raising rates) was some way off.

So if Australia begins to tighten—an implication that its economy is picking up—market participants reckon that more commodity producers and other parts of the Pacific Rim will soon feel the need to do likewise. At the same time, the U.S. has signaled—most recently on Monday, in the powerful form of William Dudley, president of the New York Fed—that interest rates here will remain low for the foreseeable future.

more:
http://www.thedailybeast.com/blogs-and-stories/2009-10-06/obamas-secret-jobs-plan/?cid=hp:mainpromo1

[BobRossi]

1. Hope he has a good plan.

He will be looking for a new job himself in 3 years if not.

[msongs]

2. oh I thought u meant jobs for lobbyists attacking health industry reform lol nt

[AllentownJake]

3. Could be a wash

The savings you get on labor are destroyed by the cost of importing raw materials for manufacturing.

[BobRossi]

4. What raw materials would we need to import?

We have been exporting raw materials for a long time.

[AllentownJake]

5. OIL for one?

Seeing that everything we do, grow, or make requires it.