Bush's Irresponsible Monetary Policy

Deficits don't matter, neither does a falling US dollar. As WP reports:

To the mounting dismay of foreign officials, the slide in the dollar gathered new momentum yesterday, but the Bush administration restated in no uncertain terms its longtime policy of leaving the U.S. currency's value to the markets.

As the dollar's descent accelerates, many economists have grown alarmed about the administration's approach. Because the United States is running huge budget and trade deficits, the country is dependent on foreigners to buy vast amounts of U.S. Treasury bonds. The fear, expressed by former Treasury Secretary Robert E. Rubin among others, is that if foreigners sensed that a dollar rout was unfolding they might refuse to buy more U.S. bonds, dump their holdings and spark a financial crisis.