The dollar's decline: from symbol of hegemony to shunned currencyBush's first Treasury Secretary, Paul O'Neill, tried to warn Dick Cheney of the threat to the economy if Bush continued the ways of Ronald Reagan and Bush's father in running up huge budget deficits. Cheney's reply? "Reagan proved deficits don't matter."
The decline of the dollar, symbol of US global hegemony for the best part of a century, may have become so entrenched that some experts now fear it is irreversible.
After months of huge and sustained turmoil on the money markets, lack of confidence in the world's totemic currency has become so widespread that an increasing number of international traders are transferring their wealth to stronger currencies such as the euro, which recently hit its highest level against the dollar.
Paul O'Neill, an honorable man, was stupefied by that statement -- and later fired by Bush -- presumably, for being right. Because of course, Cheney, and Reagan and the two Bush's were dead wrong about their huge deficits.
How three Republican administrations brought down a 100 years of economic and monetary dominance.
And now we get to pay for it.
