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To: RWR8189

Thanks again. Someone posted on another post that Bush devalued the dollar in 2001. What did he do, or do you not agree? What can a Pres. do to devalue currancy? Econ is not my strong suit.


20 posted on 06/11/2005 7:16:20 PM PDT by uscabjd (terry green)
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To: uscabjd
Thanks again. Someone posted on another post that Bush devalued the dollar in 2001. What did he do, or do you not agree? What can a Pres. do to devalue currancy? Econ is not my strong suit.

In GWB's case he probably told Greenspan he wanted to weaken the dollar. The Federal Reserve in return will keep interest rates low compared to other countries, which will weaken the dollar compared to other currencies. In fairness to GWB, 911 had an effect too, in that we wanted an easy monetary policy to help the economy after the attacks. Traditionally, the president can also have the Treasury buy and sell currencies to affect the value of the dollar, though that wasn't done this time.

GWB also gave very stupid economic speeches which hurt the dollar as well as the stock market. His direction to Congress to spend like drunken sailors and not using the veto also had a big effect on weakening the dollar.

30 posted on 06/12/2005 3:45:39 AM PDT by Moonman62 (Federal creed: If it moves tax it. If it keeps moving regulate it. If it stops moving subsidize it)
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