Sunday, April 15, 2007

What is the meaning of the falling dollar?

Interesting diary on the falling value of the dollar over at dKos.

The article pulls together a lot of international data. Essentially the discussion points to the fact (which we have all known for three to four years) about the fact that the Bush administration has been utterly irresponsible about borrowing money to keep the American economy afloat. This has already led to a devaluation of the dollar against the Euro, and next is going to mean devaluation against the Chinese currency. The fed has been protecting the American standard of living through financial manipulations, but this is only delaying the inevitable. Unfortunately, the process of delay will also make the inevitable worse than it had to be.

It could be better written. The overall implications aren't really clear, but a lot of useful facts are presented. I guess that's what you call a tepid recommendation [Grin] but the subject is very important.

I can't help but suspect that the Bushies are setting the economy up to where the next President will have to deal with the total mismanagement from the Bush/Cheney administration. The result will be that the next President will take the blame for what this one has done.

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