Pethokoukis: More Risk from this president

Holy crap. Well, those of us who were newly graduated in the teeth of the Carter misery index (unemployment plus inflation in double digits) have been worrying about this--but a deliberate strategy?:

Obama could try to emulate Reagan by proposing a massive tax cut, but that seems unlikely given the administration’s belief that America is under-taxed right now.

But there is another way, although it is amazingly risky. A Bloomberg story, using a simulation run by Macroeconomic Advisers predicts a 10 percent decline in the dollar in the first six months of next year would do the following:

1. Gross domestic product would rise 1.1 percentage points more than the St. Louis-based firm’s baseline forecast for next year, to 4.8 percent.

2. In 2012, growth of 5.7 percent would exceed the baseline forecast by 1.3 percentage points.

3. Unemployment would fall to 7 percent by the end of 2012, 1.4 points lower than the firm’s baseline forecast.

There you go, Morning in America II, thanks to the weak dollar — unless of course the dollar starts plunging out of control, boosting inflation and creating a panic.

A Reichstag moment? You think I'm alarmist. Well, I'm alarmed. Just look at what this president has done. Look at what he says: The Quiet Courage of Our Choice

Now what will he do next.

Shelby Steele, WSJ:

Barack Obama put the Democrats in the position of forever redeeming a fallen nation rather than leading a great one

Real Clear Markets

It's Time for Some Cold, Hard Truths - Jim Cramer, TheStreet.com
Bond Investors Go to War with the Fed - Paul La Monica, CNNMoney
Warning: Retirement Disaster Ahead - Brett Arends, Wall Street Journal
States Face Perpetual Sophie's Choice - Justin Rohrlich, MarketWatch

More. Charles Kadlec, WSJ: Gold vs. The Fed: The Record Is Clear

VOTE your guts out.

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