The dollar keeps plunging.
This is due to the fact that a secret “TARP” injection of $600 billion into the US economy by the Federal Reserve.
Unlike the US government which is more or less transparent with its TARP funds, the Federal Reserve operates in secret and without controls of any kind.
Driving down the dollar is the Fed’s unstated and secret purpose. It was also the purpose of Obama’s pouring $700 billion worth of TARP funds into the US economy.
Obama’s stated purpose for stimulating the economy is to generate jobs. This is true, but the Obama Administration has never been clear on just how TARP funds generate jobs (other than for bankers, and Wall Street).
The grand design, if you can call it that, is to print so many US dollars that the value of the dollar decreases. So how is a cheap dollar going to create jobs?
Cheap dollars mean that the effective cost of labor in the US is reduced. If Obama can get the dollar down far enough, American laborers won’t be making more than their foreign counterparts. This will help exports, and America will become like China with cheap exports based on cheap labor.
The fact that this will greatly reduce the buying power of the American worker is of no concern to Obama. Lowering the salaries of American workers by cheapening the dollar will destroy the American standard of living.
Obama hopes that most Americans will not notice, since their dollar incomes will remain more or less constant—even though the value is less.
Ben Bernanke of the Fed will continue to print dollars and push them into the economy.
The resultant cheap American labor is how Obama plans to create jobs at the cost of America’s standard of living.