[FoRK] How far will the dollar fall? (was: Demonizing the hedge funds...)

[Russell Turpin]

Jeff Bone writes:
> Bush has directly and indirectly done more to adversely impact our
> economic present and future than any president since FDR. Between the
> prescription drug benefit and the double-whammy of tax cuts and
> massive, unprecedented deficit-fueled spending increases, the man's
> done more to reduce the real wealth of most Americans than you can
> shake a stick at --- and that's just for starters. (Per the latter,
> the dollar-savings of the Bush tax cuts are offset by the portion of
> dollar-devaluation tied to the deficit spending increases alone...

I've often wondered how much of the dollar's fall was due to the Bush 
debt. Jeff is in a far better position to estimate this than am I. It 
seems to me the Iraq war also plays a role in this, independent of it 
being the cause of much of that debt, in the international loss of 
confidence in the US. "Soft" events also affect markets.

So, Jeff... how much lower will it go?

And you're absolutely right: that is a direct tax on the net worth of 
every American. Far, far worse than any other kind of tax. And it is 
a multiplier of the capital gains tax, since to the extent that one 
dodges dollar depreciation by putting savings into something that 
runs contra the dollar (any advice?), one then pays capital gains on 
the purely paper "gain."


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