Humorous Post of the Day?

by Florida's #1 Mortgage Planner on March 8, 2008

This post would probably be quite laughable if it weren’t true.  Treasury Secretary Paulson continues to talk about a strong dollar policy and its benefits, even while the dollar is breaking through to new lows.  Does he really think that his talking about a strong dollar will create a strong dollar? 

“The strong dollar is in the nation’s interest. Our economy like any other has got its ups and downs,” Paulson told an economic policy conference at Stanford University. “The long term fundamentals are strong. And I’m confident they’ll be reflected in currency market.”

Stagflation appears to have entered our economy, marked by a deteriorating jobs market and increasing inflation.  That’s has shown to be the case in the latest economic data, so where are these “long-term fundamentals” that are strong enough to boost the dollar?

Instead, he dollar has been declining in value as the U.S. economy has weakened under the strain of a housing crisis and financial market turmoil. Federal Reserve interest rate cuts have also reduced the dollar’s value against major currencies including the euro and Britain’s pound.

I bet the rest of the world is laughing, but unfortunately, we can’t.

Leave a Comment