December 1, 2004

Market Wisdom

Republicans are constantly telling us that the market, in it's everlasting wisdom, should be left to decide everything. Well what does it say that this administration is assumed to lying by the "Market."

The dollar sank to a record low against the euro and fell to its lowest level since March 2000 versus the yen on Thursday
The market also took little notice of comments from a senior U.S. Treasury official that Washington was commited in cutting its budget deficit to help the dollar.

Asked, after a meeting with officials at Bank Indonesia, about U.S. policy regarding the weakening dollar, Assistant Secretary for International Affairs Randal Quarles told reporters: "I explained the commitment to reduce the fiscal deficit as well as to increase U.S. domestic savings."

The dollar is going down, in part, because of the massive budget deficits we are running up. The dollar would go up if the "Market" thought the administration was telling the truth. All hail the wisdom of the Market.

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