Obama support for dollar, NAFTA in doubt ahead of speech

Paul Volcker

As Sen. Barack Obama prepares for a major speech on the U.S. economy tomorrow, a key adviser says the U.S. dollar may give way to a global currency, and controversy continues over whether the Democratic presidential candidate intends to stand behind threats to renegotiate NAFTA.

No details of the speech, scheduled for 9:15 a.m. Eastern Time at Cooper Union in New York City, have been released by the campaign.

Former Federal Reserve chairman Paul A. Volcker, a declared supporter of Obama's candidacy since before Super Tuesday, told Business Week last week the logical complement of free trade is a global currency – statement that appeared to abandon the dollar.

"If you have a closely integrated world economy with free trade and free movements of capital, the logical complement of that is a global currency," Volcker told Business Week on March 19.

In an article entitled "It's the Dollar, Stupid," published March 5, Judy Singer of the Wall Street Journal quoted a remarkably similar statement Volcker made in January 2000.

"My sense is that if we are to have a truly globalized economy, with free movement of goods, services and capital, a world currency makes sense," Volcker said. "That would be a world in which the objectives of growth, economic efficiency and stability can best be reconciled."

Appearing on the Charlie Rose television show March 18, Volcker said it hurt his feelings that the Swiss franc is now worth more than the dollar.

(Story continues below)

Asked by Rose if it equally hurt his feelings the euro was worth more than the dollar, Volcker answered, "Well, no, the euro was sort of born more than the dollar."

According to Bloomberg, the dollar today posted its biggest two-day loss against the euro since January 2006, with traders speculating the Federal Reserve will lower rates even further, to bolster the struggling U.S. economy, while expectations are the European Central Bank will hold rates steady.

The dollar, which has lost 8 percent of its value this quarter and 50 percent of its value since President Bush took office in 2001, fell today 1 percent to $1.5799, within 2 cents of the all-time low at 2:12 p.m. in New York.

On March 17, the dollar hit $1.5903 to the euro, the lowest level since the euro was introduced in 2000.

In a debate before the Ohio Democratic Party primary, Obama joined Sen. Hillary Clinton in saying he would renegotiate NAFTA.

The credibility of that threat was called into question when Canada's CBC News confirmed Ian Brodie, chief of staff for Canadian Prime Minister Stephen Harper, was the source of a leak that an Obama top aide had met privately with Canadian officials to reassure them the senator's hard language on NAFTA was just empty talk aimed at winning votes in Ohio.

After the controversy broke, the Associated Press released a copy of a memo documenting that a meeting had taken place between Obama's top economic adviser, Austan Goolsbee, and officials with the Canadian consulate in Chicago. Goolsbee advised the Canadian officials Obama's harsh statements about NAFTA could be taken as a sign of "political positioning," not "a clear articulation of policy plans."

Meanwhile, Obama denied offering the Canadians a "wink-wink" reassurance on NAFTA, telling reporters March 3 in Carrollton, Texas, "Nobody reached out to the Canadians to try to assure them of anything."

Meanwhile, WND reported the U.S. economy is no longer No. 1 in the world, as the fall of the dollar has now caused the Gross Domestic Product of the European Union to surpass the GDP of the United States.

Obama's economic address tomorrow follows one by Sen. John McCain today in which the Republican Party presidential candidate refused to promise broad federal government assistance to homeowners or banks rocked by the deepening mortgage crisis and resulting stock market turmoil.

 

---

To interview Aaron Klein, contact M. Sliwa Public Relations by e-mail, or call 973-272-2861 or 212-202-4453.

 

---

Special offers:

Defeat Obama, Osama and Chelsea's Mama: Go ahead – say what you really think with WND's newest bumpersticker

Blacks exploited by their own leadership

How to rebuild America: A black leader speaks out on creating strong families, increasing wealth of working people

'Silent No More: Bringing Moral Clarity to America'

Get the stunning new film "Hillary! Uncensored" from WND's online store

'Target: Caught in the Crosshairs of Bill and Hillary Clinton'

---

Previous stories:

Top Obama adviser: NYC, Miami Jews 'the problem'

Obama-church newsletter: Israel making 'ethnic bomb'

Obama 'money man' tied to 'house n-ggers' pastor

2nd Obama-linked pastor under fire for racist talk

Obama's pastor 'crucified' just like Jesus by Romans

Obama: 'Outrageously wrong' to reprint Hamas manifesto

Francis Schaeffer's son: Dad 'worse' than Obama's pastor

Obama church published Hamas terror manifesto

Obama website yanks 'Black Panthers' plug

Racists endorse Obama on candidate's website

Obama in 2007: Fire Don Imus

Obama's church sponsoring 'African-centered' school

Obama speech tackles 'divisive turn on race'

Text of Barack Obama's Philadelphia speech

See Obama's Philadelphia speech

Obama pastor's theology: Destroy 'the white enemy'

Obama's preacher sanitizes website

Obama: I never heard my pastor's trash talk

Obama's minister said America made AIDS to wipe out blacks

Obama pastor: Not God bless, but God d--- America!

Obama camp rips Ferraro race remarks

Lawmaker affirms terrorists want Obama White House

Obama lobbies 'gays' for edge over Hillary

Obama supporters: 'I believe'

Is Obama the messiah?

Obama campaign: Mum's the word!

Sleaze charge: 'I took drugs, had homo sex with Obama'

Swooning supporters fainting for Obama

Obamamania rocks Seattle

Obama aide wants talks with terrorists

Obama's pastor disses Natalee Holloway