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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: Bread Upon The Water who wrote (54367)	5/9/2009 12:23:07 PM
From: koan	Read Replies (1) \| Respond to of 149317

nytimes.com March 1/1987 - With imports rising sharply, President Reagan officially backs intervention in the currency markets as a means of reining in the dollar. Soon after the announcement, the dollar begins the decline that has continued to this day. Sept. 22 - At the Plaza Hotel in New York, the United States, Britain, France, Japan and West Germany agree to work in concert to drive down the dollar. Although the group takes no specific actions and announces no numerical targets, the threat of intervention spurs widespread dollar selling. Feb. 20, 1986 - With the dollar down about 30 percent since the Plaza meeting, Paul A. Volcker, the Federal Reserve Board chairman, states in Congressional testimony that the dollar has dropped enough and expresses concern that a protracted decline may undermine confidence in the currency. March 25 - Japanese Prime Minister Yasuhiro Nakasone attempts to talk down the value of the yen and threatens intervention, but traders continue to drive down the dollar. Oct. 31 - At a Washington meeting, Treasury Secretary James A. Baker 3d and Japanese Finance Minister Kiichi Miyazawa reportedly agree that the dollar should not sink lower than approximately 155 yen. Japan says it will stimulate its economy and cuts its discount rate to a post-war low of 3 percent. The dollar rises sharply on news of the agreement. November - The United States' monthly trade deficit rises to a recordf of $19.2 billion. Though later revised downward, the data are taken as a sign that the declining dollar has not yet achieved the long-awaited improvement in the nation's balance of trade. Jan. 11, 1987 - Turbulence in European currency markets, caused in part by a weak dollar, prompts the seven nations of the European Monetary System to realign their currencies. Jan. 14 - Facing intense political pressure to curb the trade deficit, the Administration leaks word that it wants the dollar to decline further. Jan. 16 - The dollar has lost 3.7 percent of its value against the mark and 2.6 percent against the yen in one week, despite heavy intervention by the Bundesbank and the Central Bank of Japan. Jan. 20 - Japan's Mr. Miyazawa flies to Washington to talk with Treasury Secretary Baker, hoping to get his help in arresting the dollar's slide. Mr. Baker refuses to make any firm pledges, and the dollar continues its decline. Jan. 21 - The dollar falls further, despite a discount-rate cut by West Germany, and ends the week at 153.75 yen and 1.8325 marks. Jan. 30 - The United States reports that its trade deficit narrowed to $10.6 billion in December, its lowest level since March 1985. - AUDREY D. GRUMHAUS Drawing; Photos of Treasury Sec. James Baker, Japanese Finance Min. Kiichi Miyazawa and West German Finance Min. Gerhard Stoltenberg (Camera Press) (page 8); graph of U.S. dollar's value in West German marks and Japanese yen, 1984-1987 (page 8)