Obama, McCain and the Dollar

I was picked up in a Reuters feature this morning discussing the current presidential candidates and their potential impact on the value of the U.S. dollar. Note that greenfaucet contributor, Kathy Lien, was also cited in the article.

We talk with members of the financial media almost every day, but for full color in this instance, fyi, I thought I'd include here the full text of of the remarks I sent by email to reporter Nick Olivari, an excellent guy whom I've known for years:

"With the looming farewell of a President who oversaw years of ultra-low interest rates, the resulting housing/credit market crises and record budget deficits, it is hard to imagine the economic environment getting any worse for the U.S. Dollar.

"Unfortunately, neither candidate for the White House offers a sure thing when it comes to a return to our country's fiscal senses.

"Barack Obama might curtail Iraq spending in the short run which could help the dollar. Longer-term, however, he'd offer a rubber stamp to the tax-and-spend economic policies of Harry Reid and Nancy Pelosi. Indeed, the House Appropriations Committee is considering a 2009 budget nearly 8% larger than this year's, which will deliver a record deficit bordering on $500BB!

"On the other hand, John McCain offers hope if he harnesses his maverick impulses to rein in spending, but a continuation of the George W. Bush economic agenda looms as an ugly prospect if he can't find domestic spending cuts to offset the ongoing war in Iraq he intends to keep funding.

"One would think that just about anyone would be an economic improvement on one of the most reckless fiscal Presidents we've ever elected. Then again, Herbert Hoover was succeeded by FDR..."