Wednesday, January 12, 2005

Department of East is West
From the AP:

While Washington insists it has a "strong dollar" policy, many analysts believe the U.S. government is content to see the dollar fall because it makes U.S. exports cheaper.

Comments reaffirming the "strong dollar" policy this week by U.S Treasury Secretary John Snow were seen by markets as indicating a hands-off approach and failed to strengthen the currency.

On Wednesday, Snow played down the record trade deficit, telling reporters in New York that "the trade gap reflects the fact that Americans are becoming more prosperous."

If you want a weak dollar, why not just say so? International trust in this administration is so low that it might help to be honest about something. "Everyone, we want to the dollar to weaken so we can sell you things. Back to work now." It seems like these guys are pathologically averse to honesty. Then again, I suppose they can just pay some second-tier right-wing pundit to promote this terrific policy for them.


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