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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Techplayer who wrote (403885)	5/7/2003 11:14:52 PM
From: sylvester80	Read Replies (2) \| Respond to of 769670

WRONG! You are dreaming: reuters.com U.S. Treasury's Snow repeats strong dollar policy Tue May 6, 2003 06:17 PM ET WASHINGTON, May 6 (Reuters) - U.S. Treasury Secretary John Snow repeated on Tuesday the Bush administration backs a strong dollar policy. "We think a strong dollar is in the U.S. interest," Snow said in an interview on CNBC television, adding, "The way to have a strong dollar and a dollar that is widely accepted as a good medium of exchange is to work on the fundamentals of the economy." Snow, the principal salesman for President George W. Bush's proposed tax reduction program that has run into trouble on Capitol Hill, said the tax reductions were the best way to give the economy a boost.

To: Techplayer who wrote (403885)	5/7/2003 11:27:26 PM
From: sylvester80	Read Replies (1) \| Respond to of 769670

The U.S. and Japan have been trying to intervene on the nose dive of the dollar since 15% higher ago. A weak dollar and strong yen is not in the best interests of the Japanese economy or the U.S. economy. There is one and only one reason that the U.S. dollar has been pummeled. It's called U.S. debt, deficit and the prospects of the U.S. economy. Anyone who invested into U.S. denominated instruments since Bush has been in office, not only did he see huge losses but in addition had another 30% decline added to it due to the trashing of the US currency. Anyone who thinks that a "weak" currency (anything more than 10-15%) is a U.S. policy or in the best interests of the U.S. economy is 100% and completely CLUELESS! ================================================ Dollar under pressure after Fed signals deflation fears By Alan Beattie in Washington Published: May 8 2003 5:00 \| Last Updated: May 8 2003 5:00 The dollar remained under pressure on the foreign exchange markets yesterday, falling against the yen in the aftermath of the Federal Reserve's signal about the risks of deflation. The White House reiterated that its "strong dollar" policy was unchanged but economists said market sentiment towards the currency remained weak. After falls in recent days against a range of currencies, the dollar regained some ground against the euro yesterday. By the end of trading in New York, the euro was at $1.136 against the dollar, around the same level as the end of London trading on Tuesday before the Fed's decision. It had fallen as low as $1.144 after the Fed's announcement. But the dollar fell to a two-month low against the yen, which surged against a range of currencies, prompting speculation that the Bank of Japan would intervene. The dollar finished New York trading at Y116.3, more than a yen lower than on Tuesday. Yesterday's movements, which also saw a sharp decline in sterling, seem to have been driven largely by short-term dynamics in the foreign exchange market. But economists said that by giving an implicit warning about the risk of deflation, the Fed had reduced the attraction of dollar assets at a time when the US was already struggling to attract money to fund its current account deficit. "The US is looking at a big shortfall in the funding of its deficit," said Thomas Stolper, global market economist at Goldman Sachs. "At some point, the decline in the dollar might help to reduce that deficit. But that will take time and the immediate concern is in attracting capital." So far, US stocks have largely held on to the gains they made following the end of the war in Iraq. But low long-term interest rates, which fell again yesterday as markets digested the change in the Fed's stance, had reduced the attraction of dollar-denominated bonds, economists said. The White House yesterday said it was monitoring the Fed's views on deflation but declined to give its own assessment of the risks. Ari Fleischer, White House spokesman, said: "The Fed issued a report yesterday. They did not use that word [deflation] per se. But they did address that concern." He added that the administration's "strong dollar" policy was unchanged. The rhetorical policy, reiterated on Tuesday by John Snow, Treasury secretary, is to repeat that a strong dollar is in the national interest and that a strong economy is the best way to achieve it. Mr Stolper added that the dollar's failure to make solid gains following the end of the war with Iraq had soured market sentiment towards the currency.