Notes on the Atrocities
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Monday, May 19, 2003  

Financial Follies

If a policy ain't gettin the job done, well, try the opposite.

"The dollar sank to a four-year low Monday after the Bush administration, in an apparent policy reversal, indicated over the weekend that it might accept a weaker dollar relative to other currencies.

"In a sequel to his remarks from the previous week about the positive aspects of the dollar's devaluation, U.S. Treasury Secretary John Snow brought the case a step further by saying that the definition of the 'strong-dollar policy' has shifted. The dollar is currently down more than 20% against the euro in the past year."

Recall that in 2001, the President argued that tax cuts were warranted because of the strength of the American ecomomy. But then the economy tanked. So then in 2002 and this year, tax cuts are needed for stimulus. It's actually a pretty good strategy: adjust your rhetoric to fit the news of the day. That way, you're always in step with whatever arises.

Of course, the Dow is currently tanking (with an hour and a half to go, it's down almost 200 points). No worries, though! Tomorrow, the President will simply explain how a tanking stock market is one of the main reasons we need to cut taxes. See how easy it is?

[Update: Good news! The dollar also got hammered today in currencies across Asia, despite those countries' weak SARS-slowed ecomonies. Soon our products will be the cheapest in the world.]

posted by Jeff | 11:27 AM |
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