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Following the whirlwind of being elected to the highest position in the country, and the all the pomp and glamour that comes with the office, some people have woken up one day and asked themselves: “what happens to us now?  Where will the Obama Bailout plan take us now that he is in power?”

While these people ponder the ultimate effect the much-vaunted bailout plan will have on them and their lives, some people decided to go back and contemplate US President Barack Obama’s supposed “promise” last year just before he got the Presidency.  A look back to October of last year reveals that President Obama said his chief priority, if elected, would be protecting tax dollars, and that he would demand a full review of the $700 billion rescue plan to make sure that it is working for taxpayers.

The bottomline here being his promise to review the plan if he becomes president and pledge that taxpayers would never again have to put their money on the line to pay for the irresponsibility of Wall Street executives.

President Obama issued this statement at a crowd of more than 15,000 all huddled during a chilly October morning last year in La Crosse, just near Wisconsin’s border with Minnesota:  “If you, the American taxpayer, are not getting your money back, then we will change how this program is being managed. If need be, we will send new legislation to Congress to make sure that taxpayers are protected in line with the principles that I have put forward”.

President Obama mentioned the apparent need to reign in spending in Washington, to be done in part by increasing government efficiency and ending the war in Iraq.  The president also emphasized that the idea he proposed, raising the FDIC cap to $250,000 from $100,000 proposal, was included in the bailout plan and again called on members of both parties to support the legislation “even if it’s not popular” for the good of the country.

So in all of this, where does the Obama Bailout Plan stand now?  And where does that put the greater American public that is in dire financial straits because of the recession?  Right now, it put everyone and everything in limbo, because the wheels have just barely started turning, and it remains to be seen if the greater American public is set to sleep inside refrigerator boxes and under bridges, or if they stand to retain whatever little roof they have over their heads.  Let us all hope it is the latter rather than the former.

President Barack Obama’s bailout plan is expected to create and even help save at least 2.5 million jobs related to the design, building, and maintenance of renewable energy projects.  These jobs include ironworking, window manufacturing, power distribution, and alternative energy as well.

These news jobs are also expected to prompt community colleges, power companies, and state energy offices to put up training programs to help both seasoned and new workers adjust well in to their new occupations.  More and more people believe that the obama bailout plan may very well be providing jobs to most of the people that have been aversely affected by the global recession.

There are, however, those who believe that the obama bailout plan may very well be causing an even greater problem, and this may very well be a problem that has no immediate solution.  The bigger problem is best explained by a look on a series of situations which could have a significant impact on the American economy.

The bailout plan, as proposed by US President Barack Obama, requires massive monetization of debt by the Federal Reserve, as well as huge new debt issues from the Treasury.  This situation in turn poses the question:  will the US dollar’s status as world reserve be threatened by this massive debt monetization?  Will this be further compounded by the multiyear mutitrillion dollar issuance of new treasuries?

These are pertinent questions because of the following reason: The United States has an economy that is primarily dependent on imports for sources of energy, shoes, clothing, and even advanced technological products.  Should the US dollar ever lose its current status as world reserve, the US will not be able to pay for the imports that sustains it, and this is undoubtedly a crises that is sure to be an even bigger problem than the current economic pinch.

President Obama has recently allayed fears regarding this issue by issuing a statement during a press conference, saying that the US dollar remains strong.  This is on the back of the belief of President Obama’s advisers that the US will have no problem monetizing debt and issue new debt endlessly, since the capital markets of the US are the deepest and most liquid in the world.

Experts, however, still maintain that the current direction of the Obama bailout plan may not be the way out of the crisis that the US is looking for.  Many believe that to avert the even bigger crisis that is looming in the background, the US must focus on saving the dollar’s status as the reserve currency.  This is seen as being done by reducing the US budget and trade deficits, a proposal that may not be the most welcome for the Obama administration.