Red Alter! Obama may bring more money into the worse market!
January 12th, 2009 — dodoAmericans are suffering a big job loss right now. Will the new president Obama pumping more money to save the deep troubled US economy?
More and more medias guess that will be a trillion to save businesses who offered jobs always but can not right now.
A trillion compared to Bush’s 700 billion, it is an amazing amount of money. So what happens next to our pity economy and money market?
If Obama continues Bush’s unfinished job pumping more money into the downward economy. The instant effect on the stock market will be a straight line rising. The money market will be a disaster. Instead of obtaining the US dollar, more and more investors will be disappointed with the deep dropping US dollar value. Today, given the appreciating dollar, the American Express exchange store is not really interested in buying dollars by decreasing the note purchasing price 10% lower than the current exchange rate. So the money market is preparing for a huge depreciating US dollar.
Is that the purpose of so called “saving our American Dream” by Obama? I personally won’t find that is so interesting. Saving the “junk auto” from crisis will put the US industry far far away from the market economy. That is not what the economists will appreciate. How much protectionism will Obama will offer to US economy, then we can guess how much deep pressure we may face.
Leave the money market alone, there is a plenty of ways saving our economy more than printing the tempting green paper notes.
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