Bernanke Drives Nail into Obama's Coffin

While the Fed may have given the Treasury a gift yesterday, as Brian Wesbury notes, it has driven a nail in Barack Obama's coffin. A much weaker dollar and inflation are now baked in the cake, which will lead to an economic environment that Barack Obama will not survive. Imports, principally oil and gasoline, will become more expensive in dollar terms and we'll now get that $4 gas price that I have predicted along with its consequences for those in power. Inflation will rear its ugly head again, which, as Scott Grannis points out, dampens investment in productivity enhancing technologies. Manufacturing and capital investment has been a bright spot so far in these meager recovery, but these areas will now likely slow down. Add in those two massive exercises in micro-management that the Pelosicrats have given us, and we have some very thick, nasty mud in which to get mired down in economically. There are no more incremental steps left that can possibly improve the economic outlook, a "shock and awe" revitalization effort is needed that includes tax cuts, strong dollar policy, deregulation, substantially less government spending, and repeal/reform of ObamaCare and Dodd-Frank. And it won't be coming from Barack Obama. Therefore I conclude he is cooked. As the economy stagnates, I predict his approval ratings will sink into the 30s, just as he has to face the voters again in 2012.