French President Nicholas Sarkozy told American lawmakers Nov. 7 the U.S. must support the dollar or risk triggering a trade war. Canadian Prime Minister Stephen Harper said the same day the Canadian currency's climb has been rapid and unprecedented ``by any standard.''
The G-7 hasn't intervened to buy or sell currencies as a group since September 2000, when it came to the rescue of a weakening euro.
The pressure is mounting for Paulson to do something about the dollar. He is undoubtedly happy about the narrowing trade deficit and is probably trying to put pressure on the Chinese vis-a-vis their currency policies. But we might have reached critical mass where US exports could be hurt by tariffs as importing countries try and protect their economies. Paulson should set up a government mortgage bailout and Bernanke should announce an end to rate cuts. The dollar slide must end.
On another note, maybe we need to go ask our local legislators to put pressure on Washington to go in and pump some oil from the strategic oil reserves into the system. Wipe out the speculative money in one day. This lack of emergency reaction is starting to weigh heavily on the consumer. We don't ask much of these folks in Washington, but since they bought all that oil the past few years with our tax dollars, they need to put some back in the channel. If oil drops, market sentiment will improve.
The G-7 hasn't intervened to buy or sell currencies as a group since September 2000, when it came to the rescue of a weakening euro.
The pressure is mounting for Paulson to do something about the dollar. He is undoubtedly happy about the narrowing trade deficit and is probably trying to put pressure on the Chinese vis-a-vis their currency policies. But we might have reached critical mass where US exports could be hurt by tariffs as importing countries try and protect their economies. Paulson should set up a government mortgage bailout and Bernanke should announce an end to rate cuts. The dollar slide must end.
On another note, maybe we need to go ask our local legislators to put pressure on Washington to go in and pump some oil from the strategic oil reserves into the system. Wipe out the speculative money in one day. This lack of emergency reaction is starting to weigh heavily on the consumer. We don't ask much of these folks in Washington, but since they bought all that oil the past few years with our tax dollars, they need to put some back in the channel. If oil drops, market sentiment will improve.
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on Saturday, November 10, 2007 at 11/10/2007 11:43:00 AM.
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