Copied from "Wings of Eagles"

President Obama was addressing a conference of state governors

US President Barack Obama has said he will halve the budget deficit he inherited from the Bush administration by 2013.

The promise comes despite the huge amounts of money he plans to spend on his economic stimulus package.

Mr Obama also announced that he has put Vice-President Joe Biden in charge of overseeing the implementation of the $787bn (£540bn) package.

Former secret service agent Earl Devaney will be the plan's watchdog.

Mr Devaney's new job will be as chairman of the Recovery Act Transparency and Accountability Board and he will have to ensure that the stimulus funds are not wasted.

"He looks like an inspector, he's tough, you know he barely cracks a smile," the president said.

Healthcare funding

The president also said that $15bn would be released on Wednesday to help states pay their healthcare bills.

Some states have been struggling to pay for their Medicaid programmes, which provide healthcare for people on low incomes.

"By the time most of you get home, money will be waiting to help 20 million vulnerable Americans in your states keep their healthcare coverage," the president said.

Speaking to a gathering of state governors, he warned that if they wasted any of the stimulus funds, he would "call them out on it".

Copied from BBC

I don't know about you, but I'd like to see him pull this off. Frankly, I think we should all record this statement, and throw it in his face in exactly 3.5 years, and see what he does. Then again, the response is already made. It will say something about not being able to finish his plan because we handed him a Republican Congress, or that he has to get re-elected to finish his grand scheme, and if we do, then it doesn't matter, cause he'll never be up for re-election anyway.

I posted the above on February 23, 2009.

Now isn't that interesting?

Investors fear that more dollars means less value for each note

The dollar has fallen against all major currencies after the US Federal Reserve announced a plan to buy $1.2tn (£843bn) of debt to boost its economy.

The dollar fell by 2.9% against the euro and by 2.5% against the pound.

The US currency also declined against the yen, the Norwegian krone, the Australian dollar and Brazilian real.

The Fed's decision to buy debt means it is effectively creating new money, leading to concern from investors about the over-supply of dollars.

Dollar rally ends

The dollar traded at $1.433 against the pound, its lowest since late February.

The US currency also had its biggest drop against the euro in over two months, to $1.3506 versus the 16-nation European currency. Against the yen, the dollar bought 95.55.

HOW QUANTITATIVE EASING WORKS Central bank expands money supply by using newly created money to buy assets from banks and other financial institutions Aims to boost the economy by giving sellers of these assets money to spend on goods, services or more assets Fed pumps $1.2tn into US economy Stephanie Flanders: QE and the US

The decline in the dollar ended its rally so far this year, which has seen the US dollar rise by more than 2% against most major currencies.

The Fed said on Wednesday that it would buy long-term government debt and expand purchases of mortgage-related debt to help stimulate an economy in the midst of the worst economic crisis since the Great Depression.

It said it would buy up to $300bn worth of government debt, known as US Treasuries, over the next six months, as well as an additional $750bn of mortgage-backed securities to boost mortgage lending.

It also said it would buy debt issued by government-sponsored agencies such as Freddie Mac, which supports the mortgage market.

Market reaction

BBC economics editor Stephanie Flanders said the decision to buy Treasury bills came as a "shock" to investors.

"Why have this new spending spree at all?" she said. "The answer may be that the Fed - and the administration more generally - is concerned that the apparent improvement in credit conditions the past few months is a false dawn."

The surprise registered in the stock market, as the Dow Jones shares index jumped 90 points on Wednesday.

Following the Fed's announcement the yields payable to holders of government bonds also fell sharply.

The yield on the benchmark 10-year Treasury note fell to 2.5% percent from 3.01% - its biggest one-day slide since the Wall Street crash of 1987.

The Bank of England has already begun buying government debt to expand money supply - known as quantitative easing - while Japan said on Wednesday it would step up its purchases of government debt.

Compliments of the BBC.

Since all of you are so desperate to hear all the tasty details of my weekend in New Hampshire, I thought I'd share a little to either placate you, or make you ask more questions.

I went to visit a fine young lady over Valentines weekend in New Hampshire. Unlike my dear friend Issy, I did not elope, despite my mother's fears otherwise.

Joy and I had a fine time visiting people, attending church, talking, running, and just being together. Her parents, sister, and brother-in-law came to visit on Sunday evening. We had lots of fun.



I'm back in Ohio now, and it's cold and rainy/snowy. I'm so ready to be done here it's not funny. There's a reason I moved away ten years ago, and haven't come back. The weather stinks.