Bush’s Dollar Drop Maps Loss of U.S. Clout at Final G-8 Summit

James G. Neuger
Bloomberg
June 3, 2008

When President George W. Bush went to his first Group of Eight summit in 2001, a dominant issue was the dollar — the strong dollar, that is. The U.S. currency was on a record-setting streak, and the free-marketeering president wasn’t going to stand in the way.

On the eve of Bush’s last G-8 appearance, the dollar’s gyrations are again in the crossfire. This time, it is a weak currency, upended by slumping growth, a housing recession and record gas prices, that is gnawing away at the world economy.

The dollar’s 41 percent drop against the euro during Bush’s term writes the economic epitaph of an administration that set out to restore American preeminence. Instead, Bush heads to Japan next week for his final international summit with diminished leverage as Russian and Chinese influence grows.

“Between the economic duress facing the United States and the global community at large and the fact that the clock is running out on the Bush administration, Bush does not hold a good hand,” said Charles Kupchan, an international-relations professor at Georgetown University in Washington. He called the summit a “damage-limitation” exercise to show the world that governments are trying to contain food and oil prices.

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9 Responses to “Bush’s Dollar Drop Maps Loss of U.S. Clout at Final G-8 Summit”

1. tommy Says:
   July 3rd, 2008 at 4:05 pm

   It seems to me that the dollar weakening would be exactly what Bush wants. With the Fed ready to loan as much money to the U.S. for its defense budget, the only people really affected by the dollar dropping is the average, everyday American. We still have the guns, the bombs, the power. The gov. isn’t at risk thanks to the Fed. If you ask me, the dollar dropping would certainly pave the way for the Amero to take over. Bush is on his way out, and has done plenty of damage to the U.S.; perhaps he just wants to make one final adjustment. Plus juxtaposed to the dollar, the Euro is doing fantastic. What better way to introduce the Amero to the general public? And with a pretty face like Obama’s to boot. Or maybe I don’t know what I am talking about. Just a thought.

2. Dave Davis Dayton Ohio Says:
   July 3rd, 2008 at 4:57 pm

   Anyone know where graphs are showing dollar to Euro and/or gold. Just have not found plain simple ones show well on video.
   Thanks,
   dd

3. UppaUS Says:
   July 3rd, 2008 at 10:31 pm

   I’m not sure why no one has mentioned the $168 Billion defense budget approved last week by GW to fund the war until his departure early next year. Does anyone know how much $168 Billion represents of our total budget and how much has been spent to date on defense? Also why don’t we see the report on M-3 anymore. This is the report that the G8 puts out indicating how much money is being created (and in essence the valuation of the dollar).

4. Tom2 from Canada Says:
   July 3rd, 2008 at 10:56 pm

   Tommy – it seems you know exactly what you are talking about. Spreading the word to as many Canadians I know here but too many blind people. Worried we are all screwed!

5. Ronnie Says:
   July 3rd, 2008 at 11:29 pm

   IMO what’s being done is clearly on purpose. Even we understand how bad things are and can see we’re headed in the wrong direction. How can these people not get it???

   They do and there’s a reason for it. There’s a reason the dollar is being brought down. They can’t be that ignorant.

   The federal reserve never has America’s best interest at heart anyways. And this is clear evidence of that.

6. Biloxi Says:
   July 4th, 2008 at 7:45 am

   no more whining. fix it. stop the hoax of sustainable it is the subversion of the US Constitution. Study Brian Gerrish and then demand accountability of EVERY STATE TREASURER for investing in the ENERGY PROSPERITY PROGRAMS OF THE EU/BRUSSELS.

   Otherwise, pretend GREEN and bury ourselves underneath the dirt cause that’s the intent.

   http://useu.usmission.gov/

   http://www.dcdc-strategictrends.org.uk/

7. walmart Says:
   July 4th, 2008 at 8:34 am

   Watch for falling values! only @ chinamart oh I mean walmart!

8. pistileer Says:
   July 4th, 2008 at 11:16 am

   The once supreme petro-dollar is now fighting for its life, and while many countries are soon to feel the effects of the declining dollar…they have more options than the US; absent the NAU, and offers soon to come from the Amero…ahem! They can’t buy us out and are attempting to smoke us out…

   It is time for American’s to show their metal and roll their sleeves up, because they are attempting to back us into a corner we are fully capable of fighting our way out of.

9. Eric Says:
   July 4th, 2008 at 10:08 pm

   A nation will borrow itself into extinction to win a war. Or put another way, the people will allow the nation to borrow itself into extinction to win a war. As long as the myth survives and is believed. And myths are a big big big part of this whole debacle. It has to appear or be made to appear as if everyone is doing all they can but gee it still happened somehow that our dollar is valueless. Then it would be justified to institute a new currency. Like with the fed they manufactured(JP Morgan mini crash1911) hysteria to convince people not paying that close attention that the fed was necessary to stabilize the economy. Although the truth is that agents of the elite were allowed to destabilize the economy to sell a lie. The fed. Its just a slight variant of the same bait and switch.