Treasury's Henry Paulson Hollow Defense Of Dollar

The dollar has lost about 30% of its value versus the Euro in the past 2 years. Yesterday Secretary of the Treasury Henry Paulson was giving cheap lip support to the greenback by saying "...a strong dollar is in the nation's best interest and its strength is tied to the long-term strength of the [U.S.] economy". That's partially true. A strong economy cannot support a dollar that rolls off the printing press faster than the growth rate of that economy. Something has to give I.E. the value of the dollar on world markets goes down Q.E.D. So if the federal government really wanted a strong dollar it wouldn't print so much money.

Alas that's how Washington works. Paulson and his Wall St. cronies and Bush and his warmongering buddies want more money now and will let foreigners hold the bag of the falling buck. But sometime soon the foreigners may refuse to lose as much and decide to deversify out of our currency. That shift might be what's neccessary to end this war that relies on foreigners to fund.