BBC NEWS | Business | Dollar decline gathers momentum
The American Economy has long borrowed against the future but when President Bush claimed during his election campaign that he would continue his good economic management few economists believed anything he said. Firstly the debts of the state and individuals have been going ever skyward, secondly the trade deficit was also increasing alarmingly. The “good economic management” of the Bush administration is now coming home to roost. Now the money men have got their arch-backer back in power they will tighten the noose on the US economy until it seriously falters. Given that the situation in Iraq looks likely to have continually mounting costs and make the international economy ever more delicate, many Americans are going to have to seriously downsize their economic hopes over the coming three to four years. It is unlikely that the US will escape without a serious faltering of economic activity and the decline to unprecedented levels of the dollar in international currency markets is the foretaste. There really is no such thing as a free lunch, Mr Bush, nor a free war. And no – God won’t come and save you either – because he really does not care for you or your wars or lies.