Kudlow, Santelli: Dollar Devaluation Creating ‘Facade’ Bush-Obama Interventionist Economic Policies are Working

by Jeff Poor
October 31, 2009

Now that the Obama administration is attempting to take a victory lap on the U.S. economic recovery, claiming the $787-billion stimulus passed earlier this year was what did the trick, despite a cost of $160,000 per ‘stimulus’ job, as ABC’s Jake Tapper pointed out, it has come at the cost of the U.S. dollar.

Since then, the stock market has rebounded nicely. The Dow Jones Industrial Average (DJIA) is off a March low of 6,547 points, even topping the 10,000-mark recently. But what has caused this nearly 50-percent jump? According to CNBC’s Larry Kudlow – loose monetary policy by the Federal Reserve, with low interest rates, has made it possible for the markets to rise, with the ‘loose’ money going into the market.

“The funny thing is, Steven, it has gone into stocks – I mean the stock market guys … there’s no real multiplier for the economy, right?” Kudlow said on his Oct. 30 CNBC program. “But it has gone into stocks and the stock market crowd wants to see the Fed to keep pouring the money in no matter what happens to the U.S. dollar.”

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