Real inaction on the dollar

<![CDATA[The Bush Administration's idea of bouying the dollar has been to threaten to do nothing. Meanwhile, as I noted last week, the dollar only continues to fall, hitting a new low today. This is a problem because investors will not put money into dollars when there is a built-in depreciation on the currency and the cost of paying the national debt soars because of dollar devaluation; any benefit to the economy from America products being cheaper is more than offset by the dampening of the U.S. investment environment, which is where we really need to focus the recovery.
So much for decisive action from the leadership president, but since his base is safely invested overseas, I guess the reasons are clear: This is an administration that doesn’t give a damn about the average worker and family finances.]]>