Sunday, March 27, 2005

Collision Course

In 1987, when the US and Europe last disagreed so vehemently about monetary policy, there was a stock market crash that rocketed around the world. Cooler heads prevailed, and agreements were reached. This time, however, Bush has promoted the same gaggle of unilateralists that pushed this policy in the first place. Bolton, Rice and Wolfowitz are his way of telling Europe that he won't back down, and instead is willing to have a replay of the collapse of Bretton-Woods under Richard Nixon.

So if you want to know why Europe is increasingly estranged from the US, the reason is simple: by printing too many dollars, Bush is trying to tax the Europeans to pay for his borrow and squander policies. By appointing Bolton, Rice, Wolfowitz and other neocons to high positions, he sends the signal that he expects Europe to capitulate.


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