Strong dollar, weak dollar

 Just because the Financial Times is a wonderful publication worthy of as much praise as I can give it, doesn’t mean you don’t have to think about what it is saying. I just clicked on the top story. Its about the falling dollar and in it it says, “On Friday, John Snow, the US Treasury secretary, maintained that the US supported a strong dollar, and added the familiar rider that, the determination of exchange rates is best left to the market.” Does that mean the US has a strong dollar policy? Well if you weren’t thinking, or didn’t understand what they were saying, you could argue that the US does have a strong dollar policy, after all that is what the Treasury secretary said. To the casual observer that would be enough. But to the more knowledgeable, the second part is the key. The administration can say the have a policy all they want but their actions are the only thing that counts. And as they clearly report the actions are non-existent. They say strong dollar, they act weak dollar. So which policy is it? The verbal or the physical.

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