Friday, November 26, 2004

Reality does not enter into Dubbyuh's lexicon



Yet again, Dubbyuh's words and actions diverge from each other. Since 2003, the dollar has declined nearly 25% against the euro. Dubbyuh contends that he believes in maintaining a strong dollar. Yet the dollar continues the unchecked free-fall it has been in since 2001.

Granted, this makes US exports cheaper overseas, but America continues to import far more than it exports and the continuing trade deficit is saturating foreign markets with dollars. In some of these markets, China in particular, currency traders are exchanging their dollars for renminbi which they view as being safer than the dollar.

Despite its "strong dollar" rhetoric, the Bush administration sees a weakening dollar as a means of getting a handle on the trade deficit. The problem here though is that while it provides some relief for US exporters, it leaves the rest of us open to sharp inflationary spikes and higher interest rates. But if you don't play in the Bush League, which most Americans don't, you're just shit outta luck.

The only sensible solution to the problem is to address the ballooning budget deficit. There is a direct correlation between the dollars slide and the runaway deficit spending of Dubbyuh and his merry band. But that would put a crimp in their ability to provide tax-cuts to their corporate pimps and johns. And, a viable social safety-net doesn't even make it on their radar screen.

So when the dollar and the US economy crash don't blame me. I voted for Kerry.

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