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Kizzume
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Joined: 31 Dec 1969
Posts: 2832
Location: Tacoma, WA USA
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 Posted: Wed Dec 05, 2007 2:14 am Post subject: Bush's "stong dollar" policy |
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http://www.washingtonpost.com/wp-dyn/content/blog/2007/11/08/BL2007110801247_pf.html
Let's see:
Bush, December 2003: | Quote: | | The policy, the stated policy -- and not only the stated policy, but the strong belief of this administration is that we have a strong dollar. |
Bush, April 2005: | Quote: | | Right. Well, I, let me, I, I'll try to make a forceful statement right now. This government is for a strong dollar. We do believe the market ought to set the price of the dollar relative to other currencies, but we are for a strong dollar. |
Last month: | Quote: | Consider how eager he was to drop the subject last month during a Wall Street Journal interview:
WSJ: "[T]here has been a lot of concern, obviously, about the value of the dollar around the world, and some calls for the U.S. to put more action behind its vow that we support a strong dollar. How do you respond to them, and do you think Treasury needs to intervene at all at this point?"
Bush: "Secretary Paulson, of course, is our main spokesman on this issue, and he reflects the view of this administration that the strong dollar policy is the correct policy. And we also believe that the best way for a currency to become valued is through the market."
WSJ: "That's it?"
Bush: "Yes."
WSJ: "Is the low dollar helping the trade deficit numbers that today were pretty good?"
Bush: "The policy of the U.S. government, when it comes to the dollar, is a strong dollar policy, and that the currency -- the value of the currency needs to be set by the market."
WSJ: "Okay." |
Now that the dollar has fallen to the point it has, and it looks like it's getting worse, what's he going to say now?
He just said this today: | Quote: | | "We have a strong dollar policy, and it's important for the world to know that" "We also believe it's important for the market to set the value of the dollar relative to other currencies. And if people would look at the strength of our economy, they'd realize why, you know, I believe that the dollar will be stronger." |
I just wonder what world he's living in.
I think about Renoise--a program I use for music. When I bought it in 2004, it was about $45, based on the Euro. Now I would have to spend around $75, and they haven't raised the price. What a wonderful "strong" dollar.
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chuq
Joined: 04 Dec 2007
Posts: 135
Location: Gulf South
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| Posted: Wed Dec 05, 2007 2:16 am Post subject: |
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Strong dollar is wishful thinking right now. Maybe in a year or so when the sub-prime thing calms down, but right now it will not be strong.
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- Gore Vidal
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Kizzume
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Joined: 31 Dec 1969
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Location: Tacoma, WA USA
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| Posted: Wed Dec 05, 2007 2:16 am Post subject: |
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Maybe he's meaning the physical consistency of dollar bills : 
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chuq
Joined: 04 Dec 2007
Posts: 135
Location: Gulf South
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| Posted: Wed Dec 05, 2007 2:17 am Post subject: |
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Looks like the rest of the world sees recession approaching, a weak dollar, soaring oil, gold rising But the US government will intervene to try and head it off. On another hand, the average person has been dealing with inflation for years. ask them and they will tell you that it is already here.
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'Politics' is made up of two words, 'poli,' which is Greek for 'many,' and 'tics,' which are blood-sucking insects.
- Gore Vidal
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Kizzume
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Joined: 31 Dec 1969
Posts: 2832
Location: Tacoma, WA USA
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| Posted: Wed Dec 05, 2007 2:18 am Post subject: |
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I think about the price of standard food items. How about the price of milk? If you don't go to the right store, you can spend close to $5.00 for a gallon of milk. In '99, when I was in Texas, there were stores regularly selling it for 99 cents to $1.50. Here in Tacoma, just a year ago I could regularly get milk for $5.00 for two gallons--now it's at least $3.50 per gallon. Milk isn't everything--but how about the standard price of cars. When cars are marketed as being a steal and they're more than $20,000, what has happened?
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jq
Joined: 02 Dec 2007
Posts: 1124
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| Posted: Wed Dec 05, 2007 2:18 am Post subject: |
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Man, that interview was ridiculous. It is so embarrassing to have gw bush as a president. Hey, I'd take almost any previous conservative over him-- this guy is ridiculous. Really, I'd take any previous president at all over him. The way he talks, is so humiliating. The most powerful and listened to man in the world. ugh!
I have to be honest, this is really all scaring me. I don't make much money. For a little while, I had some sidework and was doing fairly good. Now I am living off of one job, and honestly, it isn't working out so well. I try to get the best deals on everything-- I go to a fellow neighbor for car work (he is very good and way cheaper than any mechanic), I always price crunch with my shopping, and I tried to take what little savings I have and make it work in the stock market-- it has been a so-so ride. (To its credit, I will have made like 8% this year. In a CD at a bank, it would have been less than that. Still, it isn't really saving me from this disastrous economy.)
Everywhere I go prices have risen. Since most my friends live in the U district, each time I go hang out with somebody, it costs me $6 just to drive there and back. My local pizza place just raised their price on pizza. Safeway is really not a good deal anymore-- a good frozen pizza is $6! I mean come on, thats almost as much as dominos! Forget desert, Ice cream has gone up too!
I don't know. I am bothered by the fact that the american dollar has become so weak. THere was a time when I used to go to canada with my buddy, and we got 1.29/ US dollar-- and I remember my dad saying "you know when I used to go to canada, I traded the american dollar for 1.60 canadian," and I was thiking "hopefully some day again!" Now, they come down HERE to get the deals!
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debateman
Joined: 05 Dec 2007
Posts: 349
Location: New Mexico
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| Posted: Wed Dec 05, 2007 2:19 am Post subject: |
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You know, we complain about Bush and his horrible economic policy and his stupid statements, but recessions are actually good for the economy. They are a corrective force for an overheated market and provide an in for those who would generally not have enough money to invest.
Putting your money in the stock market (specifically blue chip) is a good idea because over time the value increases. Sure, the market will fluctuate, but as inflation is a truth of economics, so is investment gains.
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Kizzume
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| Posted: Wed Dec 05, 2007 2:20 am Post subject: |
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Yeah, but you still have to be in a position to be able to invest--a spare couple thousand dollars, which if one is poor, they're not going to have.
But you're right.
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debateman
Joined: 05 Dec 2007
Posts: 349
Location: New Mexico
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| Posted: Wed Dec 05, 2007 2:20 am Post subject: |
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| Quote: | Yeah, but you still have to be in a position to be able to invest--a spare couple thousand dollars, which if one is poor, they're not going to have.
But you're right. |
Oh, I'm not denying that it's not good for the poor, but it's not good for the poor either direction. Recession = job loss, Boom = higher prices. The only way the poor MIGHT benefit is through the increased tax revenue that is diverted to social programs during a Bull market.
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jq
Joined: 02 Dec 2007
Posts: 1124
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| Posted: Wed Dec 05, 2007 2:22 am Post subject: |
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| Quote: | | Quote: | Yeah, but you still have to be in a position to be able to invest--a spare couple thousand dollars, which if one is poor, they're not going to have.
But you're right. |
Oh, I'm not denying that it's not good for the poor, but it's not good for the poor either direction. Recession = job loss, Boom = higher prices. The only way the poor MIGHT benefit is through the increased tax revenue that is diverted to social programs during a Bull market. |
I will agree that a recession is a necessity. Where I would disagree with is that rapid inflation is good for the economy. Its not. We need to increase mortgage rates, not lower them, so we can get our dollar value back, because inflation is never good, for anybody. (in my opinion.)
Actuallly, there are a variety of things we need to do to combat inflation. My point however is simply that we need to combat inflation.
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debateman
Joined: 05 Dec 2007
Posts: 349
Location: New Mexico
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| Posted: Wed Dec 05, 2007 2:23 am Post subject: |
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| Quote: | | Quote: |
Oh, I'm not denying that it's not good for the poor, but it's not good for the poor either direction. Recession = job loss, Boom = higher prices. The only way the poor MIGHT benefit is through the increased tax revenue that is diverted to social programs during a Bull market. |
I will agree that a recession is a necessity. Where I would disagree with is that rapid inflation is good for the economy. Its not. We need to increase mortgage rates, not lower them, so we can get our dollar value back, because inflation is never good, for anybody. (in my opinion.)
Actuallly, there are a variety of things we need to do to combat inflation. My point however is simply that we need to combat inflation. |
Combating inflation is like a child fighting sleep. Eventually, it will come. Putting it off doesn't do any good. In accounting we have been looking into Time Value of Money. It basically shows that inflation is a LAW of economics. It's gonna happen. The question is, how do we limit it's effects, not limit it.
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jq
Joined: 02 Dec 2007
Posts: 1124
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| Posted: Wed Dec 05, 2007 2:25 am Post subject: |
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| Quote: | | Quote: |
I will agree that a recession is a necessity. Where I would disagree with is that rapid inflation is good for the economy. Its not. We need to increase mortgage rates, not lower them, so we can get our dollar value back, because inflation is never good, for anybody. (in my opinion.)
Actuallly, there are a variety of things we need to do to combat inflation. My point however is simply that we need to combat inflation. |
Combating inflation is like a child fighting sleep. Eventually, it will come. Putting it off doesn't do any good. In accounting we have been looking into Time Value of Money. It basically shows that inflation is a LAW of economics. It's gonna happen. The question is, how do we limit it's effects, not limit it. |
Inflation happens and cannot be prevented-- agreed. Rapid inflation is another story. Rapid infaltion is bad. One way that rapid inflation occurs is when too much money is being printed, like right now (and they won't even tell us how much they are printing.) We saw this in the roman era. It is agreed by most historians that this was a very bad thing.
Inflation is naturally slowed down by a recession, but by preventing a recession, we may be further contributing to rapid inflation.
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debateman
Joined: 05 Dec 2007
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Location: New Mexico
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Kizzume
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Joined: 31 Dec 1969
Posts: 2832
Location: Tacoma, WA USA
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| Posted: Wed Dec 05, 2007 2:26 am Post subject: |
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I'm going to be hurting pretty badly from it. 
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jq
Joined: 02 Dec 2007
Posts: 1124
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| Posted: Wed Dec 05, 2007 2:28 am Post subject: |
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| Quote: | | Right, which is why I say "bring on the recession". I've got a bit saved away for law school that I would throw into the market today. I can work hard over the summer and earn it back. |
What I am worried about is that the value of our money won't come back 
Now, that doesn't mean I don't think it will. That means that I am worried that it might not.
Very, very worried.
| Quote: | | I'm going to be hurting pretty badly from it. |
You aren't alone, friend. You aren't alone :-/
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