What Obama Didn't Count On

In the State of the Union Address, Barack Obama made the claim that his policies would double exports in 5 years (Click to See Full Story: Obama Sets Ambitious Export Goal ).

This just reaffirms what I have always felt about the President and his economic team. I have always believed that Obama and his academic elite economists have this untested plan to kill the U.S. dollar with higher and higher accumulated debt (deficit spending). This, in turn, would result in an extremely weak U.S. dollar. Then, as the dollar weakens, American products would become cheaper and cheaper in the world markets. That, in turn, would result in higher exports. And, as I have written in the past, a weak dollar will also punish us for the more than 60 percent of manufactured goods that we currently import.

But, what Obama didn't count on is the fact that other countries might be just as deep in their own debt -- resulting in the collapse of other world currencies like the EuroDollar.

Since December, the U.S. dollar has actually been strengthening after having dramatically fallen since Obama took office and passed his budget busting Stimulus Package. The reason for the dollar's strength today comes out of the assumption that, even though heavily wounded by high deficit spending, it is still a better bet to hold than other currencies; making it more attractive in the world markets. This attitude started when it was learned that the country of Dubai was at risk of defaulting on its loans. It has been furthered by the fact that Greece, Spain, Portugal and three Eastern European countries are also in jeopardy of not meeting their debts. Right now, the EuroDollar -- not the U.S. Dollar -- looks to be in serious trouble as Europe struggles with its collapsing economies (Click to See Full Story: Collapse of the euro is 'inevitable': Bailing out the Greek economy futile, says FRENCH banking chief).

With the dollar gaining strength, we now have another ill-thought-out Obama plan. That's because, besides having massive debt, we no longer have a promise of greater exports. In fact, just last month, U.S. exports fell more than expected because of the strengthening dollar (Click to See Full Story: U.S. trade deficit soars in December).

Every day, this President's plans continue to reflect the ineptness of his economic team. This is what happens when a bunch of "big idea" academics get a hold of a country. None of these people have any practical, real world experience and that fact keeps showing up in their failed policies. Failed policies that haven't created jobs or stemmed the tide of foreclosures and bankruptcies. Failed policies that haven't increased business and consumer loans. Failed policies that aren't stimulating this economy. And, now, a failed policy that will leave our children paying for the outrageous spending and the lack of promised increases in exports.

In the classroom, Obama's economic team's big ideas have no consequences. But in the real world, they have serious consequences that affect all of our lives. I am concerned that these experiments will leave us with the frightening reality of economic collapse.

The "hope and change" that America should be wishing for right now is the "hope" that it isn't too late to "change" before our own economy is completely destroyed by these people!