Interesting commentary on CNN/Money about Snow/US Dollar -

[flygal]

http://money.cnn.com/2004/11/16/commentary/column_hays/hays/index.htm

snip -

Central bankers on the other side of the Atlantic are raising the decibels in their challenge to the Bush administration to back up its so-called "strong dollar" policy with actions. Yesterday one European official said he wanted to see "a real policy of a strong dollar," and today another said "it's up to the Americans to respond."

Weren't they listening to Treasury Secretary John Snow yesterday? He said that the U.S. supports a strong dollar, but the setting of exchange rates should be left to the markets.


That's sort of like saying you believe your teenager should get plenty of rest and not be out carousing with friends, and then telling the kid it's up to him or her to get home on time because you're going to bed early.

The White House is clearly not only comfortable with a declining dollar, but probably welcomes it as well as a way to help U.S. firms be more competitive in global markets. The Europeans can complain all they want. This administration shows no signs of shifting on its policy of benign dollar neglect.


--------------------------------------------------------------------------------

Kathleen Hays is economics correspondent for CNN and contributes to Lou Dobbs Tonight.

[kuozzman]

1. We're doomed!

I'm too tired to think about this, so I'm just leaving a link:

http://batr.org/view/103103.html

“Record-low interest rates encourage present consumption and generate massive debt. In just five years, total financial as well as nonfinancial American debt has surged by 51 percent or $10.9 trillion to more than $32 trillion, three times the annual Gross National Product. The Federal government itself is chafing under a $6.8 trillion debt and adding $1.6 billion a day. At present interest rates, this debt alone commands charges of $300 billion a year, or more than $1,000 per man, woman, and child.” According to Hans F. Sennholz in his essay - Saving the Dollar from Destruction - we are presented with a bleak financial future. Even under optimum conditions the alternatives are not pleasant. Now let’s ask the 64,000 dollar question. What will happen when interest rates start to rise?

[radfringe]

2. It's ORWELL all over again

A weak Dollar is a Strong dollar

meanwhile -- it's not their fault -- it's the China's fault for playing ping-pong with the yen

[tritsofme]

3. Maybe it the ECB's monetary policy wasn't so tight

The dollar wouldn't be so weak relative to it.

What action have they taken to strengthen the euro, if they believe that is favorable to them?