Letters to the Editor
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There is a third threat
Dr. Reich has diagnosed 2 causes to our dis-ease, but there is still a third more complex and entangling cause. The declining dollar. While our loose lending policies have created qualms on lending on Wall Street, and tight money has hurt the home owner and construction industries the loose monetary policies of the ever feckless Bush administration has complicated the sauce even more. As the dollar declines in value overseas, there is an increasing interest by countries who own a lot of our currency to look at other economies to trim their loses. China, Japan and the Emirates all hold scads of dollars that are looking increasingly anemic in world currency exchanges. By buying fewer treasury notes and purchasing other currencies, the Euro or Yen our dollar will continue weaken. Moreover, China and India are going to wake up some morning with their people wanting more of the return on their economic miracle. Then those cheap imports may be fewer and more expensive. All this adds to plot.