Just goes to show if you make enough zombies then they become a big voting block. But the problem for Obama is zombies are always hungry...
Obama came into office with the budget in a poor position. Bush was running a $400B annual deficit. But Obama took that poor position and made it even worse! Annual deficit now $1.5 trillion!
Does he propose any different policies to what he has been trying in the last four years? Nope. So very very large budget deficits likely to remain.
Is he likely to turn the tap off the money printing? Nope so QEternity will continue plus when the Twist operation ends that money will then be added to QE. So we will get an extra $80-90B of money printing each and every month. Great for gold and silver (I bought some more yesterday).
The US Dollar...hard one to pick. Longer term it is gone. Probably when China finally reveals how much extra gold they have been stocking up. But shorter term it is still the world reserve currency and the 'flight to safety' is still a popular pastime. Aussie dollar will drop versus US dollar over the next couple of years.
Their unemployment rate is even more manipulated than here. For starters they always add an estimated number of new positions created by companies too small to survey. So even in very poor economic times the small business sector amazingly created thousands of new jobs a month.
Their recovery is very weak if not nonexistent. Their Keynesian economics have failed but it doesnt mean they won't keep trying. Paul Krugman suggests Obama should pretend an alien invasion is imminent so he can ramp up deficits to several trillion a year to jump start the economy...it would be an incredibly stupid thing to do...so Obama will probably give it a go.
