Mudcat Café message #1391937 The Mudcat Café TM
Thread #62901   Message #1391937
Posted By: Amos
28-Jan-05 - 10:44 PM
Thread Name: BS: Popular Views of the Bush Administration
Subject: RE: BS: Popular Views of the Bush Administration
http://www.smh.com.au/news/Business/Tensions-grow-with-Bush-Administrations-inertia-on-sliding-greenback/2005/01/28/1106850109364.html?oneclick=true

Tensions grow with Bush Administration's inertia on sliding greenback

By David Sanger, Mark Landler, and Keith Bradsher
January 29, 2005




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Washington: After a first term in which terrorism and war dominated President George W. Bush's foreign policy agenda, his allies in Europe and Asia suspect that his next confrontation with the world could take on a very different cast: a potential monetary crisis, in which a steep plunge in the value of the US dollar touches off economic waves around the world.


Already, the tensions about the US dollar are becoming a recurring source of friction, a conflict that does not reverberate as loudly as the differences over Iraq but may be as deeply felt. At a meeting in Paris on Monday, the finance ministers of Germany and France complained that Europe had unjustly borne the brunt of the US dollar's downward slide and called for co-ordinated action to stop it.


"Europe has until now paid too big a share in this readjustment," Herve Gaymard, the French finance minister, said bluntly. His German counterpart, Hans Eichel, said the US needed to reduce its deficits, adding "each one has to play its role".


Two months ago, similar sentiments came from China's prime minister, Wen Jiabao, whose nation is at the centre of a struggle with Washington about currency policy. He complained about the fall of the US dollar, asking, "Shouldn't the relevant authorities be doing something about this?"


In an interview just before President Bush's inauguration, Treasury Secretary John Snow played down the tensions. "We understand that deficits matter," he said, insisting that the tight budget Bush is expected to send to Congress next month should give foreigners and the financial markets the solace they seek.