Obama Warns of a 'Double Dip' Recession By: Curtis Ophoven 11/18/2009 - 2 Comments President Barack Obama says he's worried that spending too much money to help revive the economy could undermine a fragile U.S. recovery and throw the economy into a double-dip recession. Your Ad Here In an interview Wednesday, he added that “it's important to recognize that if the nation keeps adding to deficit spending through tax cuts or more stimulus spending, at some point people could lose confidence in the U.S. economy and that could lead to a double-dip recession." What he means is that central banks around the world are losing confidence in the value of the dollar, which could lead to a currency crisis.  Just yesterday the IMF said that it wants to replace the dollar as the Reserve Currency. Obama is trying to convince the world that America will get it spending under control so that they do not continue losing faith in the value of the dollar.  Without a gold backing, faith in our nation is the only thing that supports the value of the dollar in the global economy.  In the mean time, gold is headed to $5000 per ounce. The value of the dollar is the cornerstone of the economic strength of America.  If the value of the dollar continues to drop, America will lose its economic strength and its influence as the world’s only remaining superpower.  The value of the dollar is in a dangerous position and Obama is going to have to make some very hard decisions in the opposite direction of this agenda is order to save the dollar from a crisis.  For now, Obama is trying to talk up support for more confidence in the dollar, but talk is cheap and he is going to have to start taking action very soon.  Foreign central banks no longer trust political leaders in the West. They only trust policy actions.  In the end, the U.S. will have to face the music and that means raising interest rates to double-digits to extract the trillions of dollars that was poured into the economy - in order to save the value of the dollar.  That means that Obama and company have no choice but to intentionally drive the U.S. economy directly into a double-dip recession.   Subscribe via RSS Copyright © 2010 PennyJobs.com. All rights reserved. << FREE >> Weekly Newsletter... Signup today and start receiving our free weekly newsletter! Reader Comments Comment 1 Miguel @ Great Stops Says: on Monday, November 23, 2009 7:22:33 AM Great article/post that I am going to some of my family members. The value of the dollar is at a critical stage. It will be interesting to see what happens in the 1st and 2nd quarter of next year, If we start to add jobs again and unemployment drops, then we may be able to give the dollar a really big boost. Great Blog Comment 2 Lawrence @ CRB Says: on Saturday, November 28, 2009 2:38:29 AM While I agree that many aspects of the economic stimulus were good for the country, I think enough is enough. Why on earth is the new administration spending so much time and energy on this overly expensive health care plan when there is still so much that needs to be done for the economy. Didn't Obama promise not to vote for anything that wasn't deficit neutral? I'm pretty sure I remember hearing that! Write a Comment Please keep comments civil and on-topic. Abusive or inappropriate comments will be removed without warning.  Name (required)     Email Address (required)     Website URL  Comment

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