Bush Wants Strong Dollar, to Cut Budget Deficit

[Tab]

SANTIAGO, Chile (Reuters) - President Bush reiterated on Sunday his support for a strong dollar and said he would work to reduce the U.S. budget deficit.

"At the meeting today, people expressed concern about the value of the U.S. dollar, and I reiterated that my government has a strong dollar policy," Bush told a joint news conference with Chilean President Ricardo Lagos in Santiago after a summit of Asia-Pacific leaders.

"And the best way to affect those who watch the dollar's value is to make a commitment to deal with our short-term and long-term deficit," Bush said, pledging to present a plan to the U.S. Congress on ways to reduce the fiscal shortfall.

Bush regularly pledges to maintain the "strong dollar," although currency traders increasingly interpret the term as a cover for a policy of allowing the dollar to sink.
http://www.reuters.com/newsArticle.jhtml?type=domesticNews&storyID=6877670

[aquart]

1. George is lying. As usual.

[Tab]

2. And just to reply to my own thread...

I will observe that:
1) As we know, the deficit is heavily contributed to by taking on increased debt (Iraq) while simultaneously reducting our national income (taxes) and...

2) Pushing for a weak dollar, because that spurs foreign purchases - things made here are cheaper for folks overseas, so they use this time to buy, hence making the economy seem "strong, and it's getting stronger" even when all indicators are weak. This increases the trade deficit, but it gives the illusion of prosperity.

[WMliberal]

3. must... resist...

:argh::argh::argh::argh::argh::argh::argh::argh::argh::argh::argh::argh:

[Cary]

4. I watched part of the news conference, as much as I could bear.

I listened to his response the the question about the deficit. He talks about reducing it in 5 years.

He has no plan to reduce it in 5 years.

How does he get away with this?

[WMliberal]

6. yeah, i don't trust people with 5 year plans

mao... stalin... bush

[Commie Pinko Dirtbag]

9. Commie nitpick: I think the one with the 5-year plan was Lenin, not Stalin

[WMliberal]

12. no, his plan was NEP

the new economic policy. The 5 year plan was originally Bukharin's idea, but Stalin ousted him and took his ideas.

[LiberalFighter]

7. He will blame it on whoever takes over after he leaves office.

Because it was a 5 year plan the next president didn't complete the plan.

[Tab]

10. Because...

He's only going to be president at most (we think) for four more years.

If it's not reduced after four years, that's okay... his time frame is 5 years and it's all meant to happen in the last year.

If it fails to happen, it can be blamed on his successor.

It's not just the deficit.

Bankruptcies are at an all-time high.
Employment is at a long-time low.
Per-capita income (mean, not average) is down.
Deficits are at a record high
Dollar is at a long-time low.
and on and on and on...

Just like he did in Texas, where he put in short-sighted policies that allowed him to get a short-term benefit at a long-term cost, he's running this country into the ground.

I WOULD RATHER he did a superb job running the country and was rewarded with blow jobs from every intern of his choice, than his choice of ineptness by virtue of celibacy.

Oh, wait, he IS screwing someone big time.... us

[cliss]

17. You're right. He may not last another 4 years.

WE may not last another 4 years. The hell with his 5-year plan.

I'm an Accountant, and I will wager all my experience that what they're doing is SIMPLY UNSUSTAINABLE, even in the short term. Two years max, the way we are going. Then it's going to be

swirling
in
the
toilet
bowl

[stevebreeze]

23. But corporate profits are at an all time high.

Doesn't that make all the suffering of the rest of us worth it? Na I don't think so either.

[Bush_Eats_Beef]

37. Three words..."National Sales Tax"...watch the dollar if THAT happens

People will stop spending. Maybe his "have-mores," his "base," will continue to keep the dollar afloat through the purchase of fine German luxury automobiles.

But the average mom & pop will reduce spending to "survival-level" purchases only, because people WILL NOT LIKE paying 150% or MORE of the "sticker price" on EVERYTHING they buy.

Linder, the guy trying to strong-arm this one through with the enthusiastic support of thug Dennis Hastert, says the tax (meant to replace the Federal Income Tax) will consist of your local state sales tax (mine in California is 8.25%) PLUS what he is projecting as "an additional 23%").

Economists say that to even come CLOSE to being able to abolish the IRS, as Linder intends, the sales tax will have to be between 40 and 50 percent added to the local tax...so for Californians it would be 48.25%-58.25%.

Oh yeah, the OTHER part Bush isn't discussing too much...they're batting the idea of taxing not only goods but services as well, such as your trips to the doctor.

I WANT TO SEE what this world will be like when Bush has reduced our society to two groups: his base and the homeless.

The mansions had better have some HIGH walls.

:grr:

One analysis HERE (including the 40-50% estimate): http://www.foxnews.com/story/0,2933,131693,00.html

[natrat]

5. there has got to come a point where

even the cool aid drinkers realize that this administration is based on lies. everyday a lie. Who believes this idiot

[WorseBeforeBetter]

39. The "Cognitive Dissonance" crowd...

believes him, unfortunately.

http://www.democraticunderground.com/articles/04/11/20_frat.html

Or maybe they don't, but it's less painful for them to "believe" than to admit they are "stupid and easily manipulated." No wonder their damn divorce rate is higher - they can't admit they are wrong! What's it gonna take to get through to them?

[flaminbats]

48. Bush can count on Democrats to support this plan..

It doesn't really matter if a Democrat is elected from a red or blue state, or that this plan increases the deficit.

All that matters is Bush proposed it, and Democrats must support him to be patriotic!

[Bigmack]

8. We traveled in France....

.. yes, France in September (had a great time and met great people)and the Euro was $1.22 Now.. two months later, the Euro is $1.31

We've traveled extensively, and this was our most expensive trip. Granted, we are cheapscrews, but compared to our previous trips, food was expensive.. we skipped restaurants and ate from the charcuteries(sp)... and so was lodging.

We're pricing a trip to Ireland next year, and the prices are disheartening.

Dumbya is gonna keep us home thru a wimpy dollar and by making US citizens bigger targets.

We always travel with Canadian maple leaf flags on our bags and backpacks.

[saracat]

11. Ha ha! Ha! Ha!

Isn't it tough to want George? The Euro is worth more than the dollar and you did it! Thanks!

[VegasWolf]

29. They even have *gasp* jobs in Europe! n/t

[OutsourceBush]

13. Repukes want a devalued dollar..it makes US exports cheaper

They have to near bankrupt the US in order to get it however. It is an idiotic way of trying to reduce the trade deficit.

[kostya]

14. I believe Georgie does it also to punish Europeans whose

exports to us are now hindered by being priced higher in dollars. He is shooting us in the collective foot however as eventually people lose faith in the dollar. This is VERY dangerous as about a third of our debt is held by foreign interests. How long will it be before currencies and the price of oil gets tagged to the Euro? We're fast becoming a second rater. - K

[leesa]

34. What exports? Aren't war toys the only thing we export these days?

[Art_from_Ark]

41. I went to my local import shop today

(in Japan), and found the following items from the good ol' USA:

Cheese
Potato chips
Hot sauce
Cigarettes
And booze. Lots and lots of booze.

[MSgt213]

15. "my government has a strong dollar dollar policy"? What the fuck does that

mean. He and his fucking republican led government are the ones running up our fucking debt making the dollar weak in the first fucking place.

[Khephra]

20. Bush's "Strong Dollar Policy" is...

just repeating the phrase "We have a strong dollar policy," over and over again until people stop noticing that they don't have a policy.

[Straight Shooter]

22. Yes, and it will prove to be "a catastrophic success"

How do other world leaders keep a straight face when he starts yammering? He's like a dog that farts near the dinner table. You want to laugh but everyone acts like it didn't happen.

[daleo]

43. Amusing description

And quite apt.

[AlCzervik]

16. He'll reduce the budget alright

get ready for slash and burn of any social programs and entitlements. More defense spending of course. All condiments will now be considered vegetables.

[high density]

18. More tax cuts while supposedly cutting the deficit

So which social programs are going to get the ax? They're already aiming to kill Social Security.

[grumpy old fart]

19. Hey *, try not spending like a drunken sailor and...

giving tax cuts to your buddies at the same time..it'll do wonders!

[Buns_of_Fire]

21. What a coinkydink -- China is ALSO making noises...

...about how they want to see the dollar stronger:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x1009393

The 64-dollar (or 49-Euro) question is: Would China take the chance of disrupting the world economy by eventually just getting sick of waiting and cutting their losses by dumping their T-Bonds? :shrug:

[AndyTiedye]

50. But Then China's Economy Crashes Too

If the dollar drops too much, Chinese goods become too expensive here
and then China's economy goes in the toilet.

[VegasWolf]

24. To keep my dollar strong I am going to give huge tax cuts to

the wealthiest americans so that they can spend more money!

[fugue]

25. I work for an American company that exports good from Japan

You'd expect us to cater mostly to Americans, and I suppose we still do. We're doing more and more business to the rest of the world, though.

I suppose I should be glad we have so many customers with currencies that are strong against the dollar, so that they can take up the slack of customers we're losing because the dollar is falling so fast against the yen. In the past two weeks, we've lowered our yen rate four yen (first it was 104, then 102 and now it's 100 yen to the dollar). Two weeks before that, it was two yen higher (106 yen to the dollar). Keep in mind that I've been working for this company for almost a year, and I've never seen the yen rate drop below 104 before; it was at 108 when I started, and it spent most of the year at 106.

I just dread what's coming. I fear we'll be at 50 yen to the dollar before Mr. Bush is done with us. Maybe I should suggest to my boss that she has our customers pay us in yen rather than dollars.

My boss, an entrepreneur who votes absentee in Arizona (she's lived in Japan for several years now), voted for Kerry. Among other reasons because he would be good for her business.

[cliss]

30. Good point. There's one crucial flaw

to their plan. They're hoping it will increase business as they 'race to the bottom' by gutting the dollar and letting the rest of the world get stuck with the tab.

They're going to undercut the countries that import into the US. Suddenly their goods will be more expensive. Our products will suddenly be cheaper (rubs hands together).

One fatal flaw: the companies that relied on exporting to the US will be hurting financially. This might cause big problems in those countries = recession.

What makes them think these countries will now have enough money to buy American?

[Art_from_Ark]

51. The yen has been below 104 before

Back in 1994, the yen went sky-high (all the way to 78/dollar for a moment) because the currency traders found out they could make big money just by playing with the yen. This time it's different, though-- the dollar is falling against all the major currencies.

[Javaman]

26. Wishing doesn't make it happen moron, it requires HARD WORK..

what a jackass.
I loath that man.

[nashville_brook]

27. it's the master plan

Grover Norquist admitted the strategy when he said, "I don't want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub." Norquist says his goal is to cut federal programs in half within the next generation.

[The Zanti Regent]

28. When it comes between guns and butter, Grover will learn a sad lesson

People gotta eat, and they don't have to fight in wars!

[Frumious B]

31. Yeah...and I want world peace, a pony and a guitar lesson from Steve Howe

If you're worried about deficits then you don't cut taxes during wartime.

[RPM]

32. Strong Dollar, eh?

There's your gentlemens' C HBS student at work - guess he was too coked up in International Econ to learn the difference....

[leesa]

33. So why don't we have it if that's what his highness demands?

Dollar's dropping like a stone.

[hatrack]

35. Yeah, whatever, Chimpazoid.

Yeah, that dollar's just strenghtening day after day after day. And the deficit projections just improve every minute.

Does this sack of shit not understand that no one cares what he says or thinks or does?

[struggle4progress]

36. His main constituency is a gaggle of international business thugs.

They're perfectly happy working from offshore, and they're perfectly happy with a cheap dollar. Their loyalty really only extends to a very small class of corporate elites.

[TheFarseer]

38. Oh yeah? SO DO SOMETHING ABOUT IT ASSHOLE!!!!!!

He talks a good game on budget and environment and then does the exact opposite of what he says needs to be done :crazy:

[lebkuchen]

40. In Bush's last SOU speech, he said the US had "a strong dollar policy"

That should have been our signal to buy euros THEN~.

[GHOSTDANCER]

42. what exactley is "my government has a strong dollar policy," Bush

Strong Dollar Policy?????? Does he mean that we created this little monopoly game and will change the rules how ever we feel?

[Tight_rope]

44. Is this that same as we are creating new jobs....give it a rest George!

[proudbluestater]

45. Gimme a break, liar

NOW he wants to work on the deficit? After he just passed a big spending bill to benefit big corporations a couple of weeks ago? NBC?GE got 8 billion alone out of that deal. Sick b%stard.

[boi1946]

46. I think the Second Coming

will happen before B* and RoveCo show any fiscal responsibility to anyone but themselves.

[Endangered Specie]

47. A classic example of having the cake and eating it too.

[Carolab]

49. Gee...do ya think?

"Bush regularly pledges to maintain the "strong dollar," although currency traders increasingly interpret the term as a cover for a policy of allowing the dollar to sink."

DOH!

[LynnTheDem]

52. "Cut spending"...except for that PRESIDENTIAL YACHT.

bush is a rotten stupid ignorant little war criminal asshole.