How Bush Destroyed the Dollar

From Paul Craig Roberts, the Assistant Secretary of the Treasury in the Reagan administration, we get this interesting review of the current US economic situation:

If the US government cannot balance its budget by cutting its spending or by raising taxes, the day when it can no longer borrow will see the government paying its bills by printing money like a third world banana republic. Inflation and more exchange rate depreciation will be the order of the day.

Now that Bush has done completely the opposite, I’m going to go long on the call that the US dollar will continue to plummet.

What does this mean for Canada? For starters, since we’re the largest supplier of oil to the US, we should price our oil in Canadian dollars. Other commodities should follow the same route. If that’s not satisfactory, we should at least pick a basket of currencies from countries that aren’t lead by people who could care less about the value of their currency.

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