Tuesday, June 10, 2008

Green Lantern Fiscal Policy

"In an exclusive interview with The Times on the eve of the United States-European Union summit in Slovenia, Mr Bush expressed concern about the dollar's continuing weakness and said that he favoured an appreciation in the US exchange rate.

"'We want the dollar to strengthen,' he said on Air Force One as it crossed the Atlantic bound for the summit."

But Deb Riechmann writes for the Associated Press that in his press availability today, Bush "essentially rejected the idea of possible government intervention to prop up the value of the U.S. dollar. He said he believed in a strong-dollar policy, but that world economies will end up setting the value of the dollar."

From the Times of London via White House Watch

Does the man understand anything about currency markets? There is no power ring to wave around and change exchange rates. The market doesn't devalue the Euro to make George Walker Bush happy. You have to do something to make the dollar more attactive, ie improve your economy or increase bond rates.

Good riddance

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