While the dollar hits a 15 month low, and gold hits an all time high, and the editorial page editor of the Washington Post (no less) is warning:

“The bill also could take America a step closer to bankruptcy. And for progressives in particular — for those who believe that government has a mission to help the poor and protect the vulnerable — that prospect should be alarming. If federal debt continues rising on its present path, hastened by a $1 trillion health-care bill, it is the poor and vulnerable who will be most harmed.”

This is also why some political risk analysts are connecting the dots between PelosiCare and the value of the dollar:

“If the Reserve Bank of India’s directors had any doubts about the wisdom of buying 200 tonnes of IMF gold — and likely dumping some U.S. Treasuries in the process — they had only to watch last weekend’s legislative activities on Capitol Hill. The proceedings provided plenty of reassurance that the move was a smart play.

“Nothing in the healthcare reform bill that passed the House of Representatives should give investors in dollar-denominated assets any confidence that U.S. policymakers are serious about tackling the government’s structural budget deficit.”

Amazing as it is that the Washington Post would be pointing out the obvious about the Democrats $1.2 Trillion health care spending plan, since liberal and progressive news writers have given aide, comfort and a criticism-free ride for those who are doing the spending.

It is apparent that there is no amount of money too high to spend for the House Democrats on health care reform. CBO confirms the amended House bill spends $3 Trillion.

But now Fred Hiatt has really stepped over the lines — he is “calling out” President Obama for his failure to cut keep his promise about the health bill spending and the deficit.

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Much was made of the 3.5% annualized GDP growth that was reported this week. The Bush-Blamer-In-Chief stated that the figures were “an affirmation that this recession is abating and showed the steps we’ve taken have made a difference”. Really? Have they made a “difference”? Have they accomplished anything that will last beyond the massive amount of American taxpayer money that has been thrown at the problem? Let’s look at the numbers.

Of the 3.5% gain, over 2% of the gain was due to durable goods - and most of that was automobile sales, buoyed primarily by the now-ended “Cash for Clunkers” program. Without this gain, the GDP would have increased at a much lower rate of around 1.9%. What about future auto sales? In September, sales plummeted as the C4C program sucked away sales that would have occurred later.  Also, Edmunds.com reported that the overwhelming majority of these car sales would have occurred anyway, so the actual cost of the 125,000 additional vehicles that can be credited to C4C was closer to $24,000 per vehicle, rather than the $4000 average rebate. Of course the Obama administration didn’t appreciate Edmunds calling their baby ugly, so they became an official member of the White House Enemies List.

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