Dollar's Slide Accelerates - WSJ.com

OBAMA KEEPS SHOWING HOW LITTLE HE KNOWS ABOUT THE ECONOMY: Dollar's Slide Accelerates - WSJ.com

Another factor working against Mr. Obama is the understanding and evidence (almost daily) that he really doesn't know what he is doing - in particular with respect to the economy.

It is hard to find examples of governments or states where overspending and overtaxing haven't hurt the economy or economic growth over time. (see yesterday's Wall Street Journal article on California, for example, or the ongoing articles on Greece and Portugal, etc.).

Individuals and governments realize that Mr. Obama and his party have no realistic solution for the lending bubble with which they are trying to mask the problems in the economy.

The US economy is developing into a two-tier economy where the educated have low unemployment and are demanding higher and higher salaries (see this week's WSJ article on pay at Microsoft); public unions are still way overpaid and over-benefited; and, the government's approach to providing jobs for the unskilled includes trying to deny the two-tier economy while driving down the value of the dollar to compete with Asia (and, who here benefits? As the article says, the tech companies that don't really employ many unskilled), etc., etc.

Clearly the Fed will have to be printing money come July or interest rates will rise. And, like any banker watching the financial condition of its borrowers, the world sees a borrower in Obama and the Democrats that is more akin to the family that can't contain its spending and has its credit cards maxed out.