We may buy groceries with WHEELBARROWS full of $ soon, but Paulson favors "a strong dollar"

[El Pinko]

Is it just me, or when people like Paulson and Bernanke say this sort of thing, isn't it kind of like when Bush says he loves "peace"?


http://www.bloomberg.com/apps/news?pid=20601103&sid=aMr1Wh4ICyNQ&refer=us

Paulson Says He Favors `Strong' U.S. Dollar, as Currency Slides
By John Brinsley and Rich Miller


Feb. 29 (Bloomberg) -- Treasury Secretary Henry Paulson said he favors a ``strong'' U.S. dollar that reflects the competitiveness of the world's largest economy in the long term. `In my heart and soul, I just know and believe that a strong dollar is in our nation's interest,'' Paulson said yesterday in response to questions after a speech in Chicago. `Our economy, like any other, is going to have its ups and downs, but I believe our economy is going to continue to grow this year and that our long-term competitiveness is going to be reflected in the value of the dollar.''

The U.S. currency yesterday fell to a record low of $1.5229 versus the euro, as a slowing American economy encouraged bets the Federal Reserve will cut interest rates again. The dollar also reached a 2 1/2-year low of 104.58 yen. Paulson's language recalls phrases he used in November, when the currency was in a three-month decline against the euro and also weakening against the yen.

``They're crossing their fingers on the dollar that it won't go down all that much more,'' said David Gilmore, partner at Foreign Exchange Analytics in Essex, Connecticut. ``They've got enough other problems to worry about.''

As the dollar sank to new lows against the euro, President George W. Bush said it should reflect the country's economic fundamentals. The currency has declined in five of the past six years, based on the Federal Reserve's broad dollar index, which compares it with currencies of U.S. trading partners.

[Lasher]

1. I call bullshit.

Junior has favored a 'soft dollar policy' from the very start. And just like all other Bush appointees, Paulson adheres to The Decider's ideologies.

[Loge23]

2. Paulson and the FED

Both dept's have been propping up the moron's fiscally disastrous policies.
Now we are on the brink of economic collapse. We are not even close to being the strong country we used to be. We are rapidly declining into third world criteria in many measurable standards.
And we thought it was just a bad war? Forget about it, this administration's gross incompetence has dire consequences of epic proportions for this country.
Someday, even your wingbat righty neighbor will have to admit how bad this admin. was for America.

[Lasher]

4. They're trying to make it look like they didn't do it on purpose.

All that borrowing, printing, and spending money has had its consequences.

[bdamomma]

7. total BS, we all know the status of dollar, why believe these guys.

[alterfurz]

3. we may soon be buying groceries by trading wheelbarrows...

...nevermind the dollars!

[Loge23]

5. Even the WSJ has noticed

No doubt that the WSJ is just to the right of Mussolini, but on today's front page no less there is a long story about the dire condition of the dollar.
The story describes in fairly good detail how the dollar is still firmly entrenched as the world's cuurency, but the warning signs are flashing red. To quote one sentence: "Jim Rogers, awell-known commodity investor and former partner of famed currency trader George Soros, has a particularly bleak assessment: ""The dollar is a terribly flawed currency and its days are numbered"".

So we have to that to look forward to: Nice.

[L. Coyote]

6. when hasn't someone screamed wolf?

what's difficult is keeping your mouth shut until you see a real wolf.

[Orsino]

8. Policies guaranteed to weaken the dollar say otherwise.

Paulson's wishing out loud that America had endless riches to give away to cronies. The bill is past due.

Can't wait to hear his position on motherhood and apple pie.

[lumberjack_jeff]

9. Yes. It's a head-fake

Bernanke recognizes that an economic implosion looms if foreign investors decide that the chronic losses they suffer at the hands of dollar devaluation are not justified by the trade benefits they gain by financing our debt.

Bush wants a devalued dollar, and takes for granted the idea that investors will keep buying our debt in that environment.

I'm glad that I moved a large share of my retirement to gold and foreign stocks in '02.

[Tierra_y_Libertad]

10. Yeah. And, I "favor" 50 cents a lb. Porterhouse steaks.

Preferably served by a libidinous, scantily dressed, French waitress.

But, neither is gonna happen.