So, the economy did grow between 2000 and 2008 yet the US dollar lost value. It was destroyed. The dollar was declared dead and Euro was the game. Yet, when the crash started, the US dollar went up. Bernanke is saying the opposite. He is trying to put a good face on his attempt to manipulate the currency.
Bernanke really wants weak dollar so that borrowers, including the US government can pay debt and maybe, just maybe, jobs stop being shipped abroad.
There is not much Bernanke or anybody can do. The best they could do is do nothing and get the government out of the economy. Today's problems are not about what we are doing now, but what we have already done for the last 70 years. We have expanded credit to unsustainable levels. Now it is deflating. And we want to get sober with more debt and money printing. It won't work. It will make things worse after a brief calm. These actions are not the steps to build a sound economy. Due to government intervention, economy, and industries are getting false signals for investment. The truth is being hidden behind monetary manipulation.
It is hard for the FED to turn the boat around because banks see this as what it is: A deflationary crash! Deflation is the threat now:
http://www.kondratieffwavecycle.com/economy/market-myths-exposed-inflation-is-not-a-threat-deflation-is/
1. FED makes credit available
2. Banks do not want to lend because they don't think they will get their money back.
3. Borrowers do not want to borrow because they don't think they can pay it back.
FED or Obama do not control the market. They cannot force people to borrow or lend. Eventually, free market forces will prevail. Federal Reserve does not control the markets.
http://www.kondratieffwavecycle.com/economy/the-federal-reserve-does-not-control-the-market/
So, what is the problem? Let them not lend, not borrow, no? NO. Because when we borrow, banks create money out of thin air and this money inflates the money supply. Without borrowing, deflation happens:
http://www.kondratieffwavecycle.com/economy/deflationary-crash/
When we pay down debt it is deflationary but it is a necessary evil. Perpetual borrowing won't work because creditors will stop lending when the US looses it's credit rating.