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Originally Posted by Sunday8pm
Yes, yes I do, cause I think it's set the pattern for the US to behave how they want about their currency atm knowing that the EU won't force their hand on the issue ultimately.
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I doubt Bush WANTS the dollar to fall, he just realised that there isn't much he can do about it, so he's coming up with all that crap about boosting exports, reducing imports and so on. Not even the Federal Reseve could do much with its small reserves in foreign currencies.
The only ones who could support the dollars short term are foreign central banks. The ECB for example could easily buy as many dollars for euro as it wants. Obviously this would have a negative influence on inflation, but its still better than a global crisis.