A message to President Bush, Secretary Paulson & the Federal Reserve: The U.
S.
dollar is at all-time lows, and it's hurting the pocketbook of every citizen of the United States.
Without any doubt, you know that the current fuel price problem we're facing is very largely a function of the weakness of the dollar, and the time to act is upon us.
It's time to do something about the falling dollar.
The rest of the G7 wants it to happen.
And you can do it with a single telephone call.
I realize that the Bush administration believes that a weak dollar has a positive impact on US exports, and that's good.
But there's more to consider than just export statistics.
And if the Bush administration is using a weak dollar and the effect it has on our economy to guard against the potential of protectionist legislation that is likely to be proposed by liberal politicians, he is simply shooting himself in the foot.
The government has actually shown some creativity in addresses recent financial problems.
Consider the very unusual action taken by the Federal Reserve on March 11, 2007, when the Fed swapped significant liquidity - $200 BILLION - with major financial companies in exchange for security in the form of existing mortgage debt, much of which was in default.
I do not recall anything of that nature ever having been done in the history of the Fed, and only time will tell whether it was a good idea.
But we can immediately analyze the immediate market effects:
The Fed displayed a willingness to use creative solutions to a genuine crisis, yet the Bush Administration is completely unwilling to address the one issue that most directly affects the day-to-day lives of most Americans:Weak buying power.
The weak dollar can be ended by one telephone call by either President Bush or Secretary Paulson.
It's time.
S.
dollar is at all-time lows, and it's hurting the pocketbook of every citizen of the United States.
Without any doubt, you know that the current fuel price problem we're facing is very largely a function of the weakness of the dollar, and the time to act is upon us.
It's time to do something about the falling dollar.
The rest of the G7 wants it to happen.
And you can do it with a single telephone call.
I realize that the Bush administration believes that a weak dollar has a positive impact on US exports, and that's good.
But there's more to consider than just export statistics.
And if the Bush administration is using a weak dollar and the effect it has on our economy to guard against the potential of protectionist legislation that is likely to be proposed by liberal politicians, he is simply shooting himself in the foot.
The government has actually shown some creativity in addresses recent financial problems.
Consider the very unusual action taken by the Federal Reserve on March 11, 2007, when the Fed swapped significant liquidity - $200 BILLION - with major financial companies in exchange for security in the form of existing mortgage debt, much of which was in default.
I do not recall anything of that nature ever having been done in the history of the Fed, and only time will tell whether it was a good idea.
But we can immediately analyze the immediate market effects:
- The Dow Jones Industrial Average increased over 400 points - it's best day in over 5 years
- Nearly all of the gains achieved that day were erased by the end of the very same week
- The U.
S.
dollar hit a new all-time low the very same week
The Fed displayed a willingness to use creative solutions to a genuine crisis, yet the Bush Administration is completely unwilling to address the one issue that most directly affects the day-to-day lives of most Americans:Weak buying power.
The weak dollar can be ended by one telephone call by either President Bush or Secretary Paulson.
It's time.
Source...