US President George W. Bush said the new dollar low against the euro was "not good tidings" and pushed for a stronger dollar.
US President George W. Bush said Wednesday the record low of the dollar against the euro was "not good tidings" and that he backed a stronger dollar.
Asked on PBS television, if he wanted a stronger dollar, Bush replied: "I would, absolutely."
Bush noted that the plunging dollar, which hit an all-time low of 1.5570 dollars to one euro in trading on Wednesday, had raised costs for US consumers, including for imported oil.
"Those aren't good tidings, if you're for a strong dollar like I am," Bush said about the exchange rate.
"One reason I am for a strong dollar is because ... I think it helps deal with inflation," he said.
"Our dollar doesn't buy as many barrels of oil as it used to, and so therefore it's more expensive for the American people."
Bush said the dollar could be helped by implementing policies that strengthen the economy.
"We can send signals to the world that their capital is welcomed into the United States, that we'll fight off protectionism, and that we'll deal with this," he told PBS.
"And so that's why I said ... we put policies in place that are temporary and robust, that we think will affect growth, without damaging the environment for capital investment or entrepreneurial growth," Bush said.
Aside from the weak dollar, Bush said, the main reason for soaring oil prices is the gap between supply and demand.
"Demand is increasing as a result of what has been a very robust US economy, even though we are slowing down," Bush said.
"China's economy is growing, India's economy is growing, and they're requiring more and more oil and gas to fuel their economies. And yet there is not a lot of new supply heading into the market."
Bush said Vice President Dick Cheney, who is traveling to the Middle East beginning on Sunday, will speak about oil prices to Saudi Arabia's King Abdullah.
"I hope that the king will listen very carefully to the vice president when he makes the following points: One, high oil price is damaging markets; and two, the other thing the vice president will say, which is interesting, is that high oil prices are stimulating an enormous amount of venture capital money into alternative forms of energy."
Date created : 2008-03-13