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November 17, 2008
Obama Truncated
In his first major interview since becoming President-elect, Mr. Obama spoke eloquently about the need for more government stimulus efforts to help stem the financial crisis. He also confirmed what we already knew; that even larger U.S. government deficits are around the corner. The most interesting exchange on this front is highlighted below:
Kroft: Where is all the money going to come from to do all of these things? And is there a point where just going to the Treasury Department and printing more of it ceases to be an option?
Mr. Obama: Well, look, I think what's interesting about the time that we're in right now is that you actually have a consensus among conservative Republican-leaning economists and liberal left-leaning economists. And the consensus is this: that we have to do whatever it takes to get this economy moving again, that we're gonna have to spend money now to stimulate the economy.
And that we shouldn't worry about the deficit next year or even the year after. That short term, the most important thing is that we avoid a deepening recession.
And yes, Mr. Obama also confirmed that - like most politicians - he is gifted when it comes to avoiding the tough questions. Unfortunately Mr. Kroft did not follow up:
Kroft (hypothetical): Regardless of what school most U.S. economists come from, do you or do you not think that there comes a point when ‘printing more’ money ‘ceases to be an option’ Mr. Obama?
Obviously no politician, save Ron Paul, wants to seriously delve into the limitations of U.S. dollar hegemony, especially when a further and potentially unprecedented levering of U.S. printing presses is about to take hold. Even so, Mr. Obama would do well to commit to memory some vague pro-dollar rhetoric for if, and more likely when, the dollar resumes its descent during his tenure. Perhaps this is why Rubin, whose hapless stint at Citigroup didn’t ruin his reputation, is an Obama consultant. Remember President Obama, keep any comments on the dollar short and never change a syllable, even if the dollar is plummeting by design:
“A strong dollar is in the best interests of America”.
Transcript: http://www.cbsnews.com/stories/2008/11/16/60minutes/printable4607893.shtml
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