Bush Would Like a Stronger Dollar?
Economic Browser March 12, 2008
That's the title of a post in today's WSJ RealTime Economics:
President George W. Bush said in an interview today with Nightly Business Report that the dollar's fall to record lows against the Euro is not a good thing and he "absolutely" wants a stronger dollar……
(Has he really seen the chart? By Norton)
Comments by economic Browser: When Greenspan attempted to paper over glaring deficits in national security on the heels of the Oslo Peace accord-inspired Sept. 11 box cutter attacks, he set in motion this decline of the US dollar.
I want to suggest that the apparent decline in US hegemonic capital has reduced America's status as the safest place on earth to invest and has reduced the ability of the US to intervene globally to prop up capitalism. However, the bond yields suggest that the US is still a safe place to invest. Or global bond investors are no more sophisticated than real estate investors. Hard to tell, frankly.
Moreover, it seems clear that US fiscal, monetary and energy policy mis-steps have hurt investors regardless of origin more than failing and costly, bloody US colonial policy. Those costs will reveal themselves over the next few decades I imagine.
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