Can someone, anyone, tell me why it is OK for the US to openly attempt to trash the US dollar, but it is not OK for other countries to do the same? Yes, China is clearly part of the problem, but so is the US, Japan, the UK, and every other country that actively pursues a weaker currency hoping beyond hope to stimulate exports at the expense of everyone else.

The dollar is declining because our federal government is spending too much. Our almost $1.5 trillion deficit is going to be financed by the Fed which will print money to buy federal debt. They will also purchase additional large amount of Treasurys and other assets to create inflation. The currency markets have reacted strongly to this new move into quantitative easing (QE) and, in anticipation of a future devaluing dollar, they have discounted the dollar heavily, raising other currencies such as the Canadian and Australian dollars into parity with the US dollar.

The Obama administration’s first enemy may have been Fox News, but we have seen it widen the circle of love to Rush Limbaugh, the insurance industry, the banking business, the Tea Party movement, Karl Rove, Ed Gillespie, and the U.S. Chamber of Commerce. At this point it’s almost a badge of dishonor to be left out.

Folks hoping that now the banks finally get what’s coming to them should be mindful of the fact that if we decide there’s no clear title on houses with existing mortgages, that probably means you can’t sell your home, either.

There is a crisis in mainstream economics. Simply put, the economists have utterly failed in their promises to policymakers and the public. The work of Diamond, Mortensen, and Pissarides may not be directly to blame, but this year’s award is just one more example of how out of touch the economics profession has become. To award economists for their contributions to understanding unemployment — just as it is becoming painfully obvious that the leaders of the field do not understand unemployment — is as unseemly as giving someone a Nobel Peace Prize just as he accelerates foreign military conquests.

We have been covering the systemic Foreclosure fraud that has gone viral through out the US banking system over the past few days, months and year. This is a perfect example as to why bailouts are so ill advised: The government becomes reluctant to prosecute firms when they have a vested interest in their financial success. Less than 4 weeks before the election, a game of chicken has broken out: Which of the two parties will throw their banking friends and overlords under the bus in the mad dash for votes? Stay tuned!

For now, this QE is supportive of the stock market and commodity prices. Unfortunately, it adds to the problems in the real economy, and it surely adds to the Fed’s exit problems down the road. Ultimately, this experiment will make Ben Bernanke one of the biggest horses’ asses in history. Until then, party on.

I am not qualified to judge the severity of the banks’ errors and omissions. However, I know that the ultimate losers from this will be you and me. The higher the cost of foreclosure, the more banks have to charge to cover their costs of mortgage lending. In the end, mortgage interest rates for all borrowers will be higher because of the difficulty lenders face in complying with antiquated systems for title transfer.