Dire economic news continues, Obama does little

Despite continued evidence suggesting President Obama’s policies are hurting much more than they’re helping, with regard to the economy, the President is continuing down the same road of bailouts and federal spending.

First, the dollar which was trashed handily under President Bush continues to take a beating:

LONDON (Reuters) – The dollar fell to a 2009 low on Friday as fears intensified that the United States could lose its triple-A rating, while renewed caution about the world economy and banks prompted Asian and European stocks to slip.

The dollar’s latest decline started when ratings agency Standard & Poor’s cut its ratings outlook on Britain to negative from stable, stoking fears other AAA-rated countries which are running huge debt levels could share a similar fate.

Moody’s Investor Service said on Thursday it was comfortable with its triple-A sovereign rating on the United States but that it was not guaranteed forever.

“The main issues are related to yesterday’s movement on fears that the U.S. might lose its triple-A rating,” said Roberto Mialich, FX strategist at Unicredit in Milan.

“This exacerbated the dollar’s losses over the last few days … (and) for the time being it’s hard to imagine a sharp reversal of the dollar’s trend.”

The dollar index, which measures the currency’s strength against major trading partners, fell 0.3 percent to its lowest since late December, before steadying.

The index is on track for its biggest weekly drop in two months, when the Federal Reserve launched its large-scale purchases of U.S. Treasuries in late March.

Minutes of the Fed’s April meeting, published this week, showed it considered buying more securities to spur recovery, a move which would inject more dollars into the market.

The loss of the United States’ AAA rating didn’t happen overnight, it is due to Obama doubling, no tripling down on President Bush’s massive spending and deficits. Had President Obama chosen a more responsible, more stimulative direction, we may be heading out of this situation instead of heading off a financial cliff.

What irritates me is that everyone, including Democrats, complained about President Bush’s deficits. However, President Obama has made the situation measurably worse instead of approaching this differently. One can’t help but wonder if it’s that the federal government can’t learn or that it won’t learn.

We could have done a number of things that would have truly stimulated the economy. Instead we’ve wasted billions and continue to waste billions on failed ventures like keeping General Motors out of bankruptcy, which didn’t happen as many of us rightly predicted.

Here’s more elaboration on the topic care of good ‘ol Glenn:

Sounds like fun.