Economist Dean Baker publicized some years ago that the chronic United States foreign trade deficit was not sustainable and he advised that the devaluation of the American dollar would be a good policy for their domestic and global economies. And this same economist publicized that the wealth created by the booming stock market of the 90s was not sustainable as well since the average ratios of Price/Earnings per share had been increasing in their thirties (30s) from a traditional average ratio of about fifteen (15).

Today the American dollar is devaluating against other currencies and this is happening as the Bush administration is waging a war against terrorism all over the world. The world is complex, but wouldn't it have been better to have had a devaluated American dollar in peace time rather than have its present devaluation in war time? And wouldn't it have been better to have had a lower boom of the stock market in the 90s rather than to have had the experienced recent crash?

Speculation and greed are at the source of our economic problem and the Bush administration is furthering our problems by waging never ending wars on terrorism and tax cutting all over the world.

References

Pertinent articles published by Ensign

Dollar Hits a 2-Year Low Against Euro By RICHARD W. STEVENSON, June 21, 2002, The New York Times http://www.nytimes.com/2002/06/21/business/21DOLL.html

THE NEW ECONOMY GOES BUST: WHAT THE RECORD SHOWS By Dean Baker, October 29, 2001 http://www.cepr.net/new_economy_goes_bust.htm