WTF?

[jerseyfabulous]

Bush: "We're strong dollar people in this administration and have always been for a strong dollar."

So, Mr. Bush, care to explain the current state of the dollar? We're almost down to parity with the Aussie dollar. Canadian dollar is as close to 1:1 as makes no nevermind. The Euro and the Pound fart in our general direction.

Comments

[restivemind.livejournal.com]

In Wall Street lingo this is known as "jaw-boning" the markets into thinking that we will take serious action thereby hoping that the dollar traders will strengthen the dollar through the markets rather actually having to raise interest rates domestically. It might also be a veiled attempt to get the EU nations to not raise there own rates and crush the dollar more. This substitutes for actual fiscal policy, apparently.

[jerseyfabulous.livejournal.com]

Yeah, but seeing as jawboning is all this administration has ever done, I don't think it's going to work.

[(Anonymous)]

Correct. And nobody in the markets listens to him anyway (nor has, ever since it became apparent that this was only lip service 4 or 5 years ago).

That said, the market rumor mill has been escalating with chatter that the dollar is oversold, especially against the Euro. European economies - as strange as this may sound - had every bit as rough a spring, if not rougher, than ours. They're not immune to $140 oil or wacky mortgages - especially in Spain - either. And we've held even at 2:1 versus the pound and 1:1 versus the Loonie for upwards of a year now, indicating some stability.

-je

Also, when comparing us against the Loonie and the Ozzie, remember that those two economies are considered proxies for natural resources. If resources and commodities are up, then it follows that Canada and Australia should be strong against everyone else: Americans, Europeans, Brits, etc.

[restivemind.livejournal.com]

C'mon people. We all know that all you really have to do is tell folks what you want to happen and it will magically just occur. You know like, "We are winning the war in Iraq", or "We will do all we can to help the citizens of New Orleans", or "Increase the size of your manhood with just a little organic pill". ;)