Anatole Kaletsky of The Times, one of the most senior economic editors over
here, and as right-wing as they come, surprised me this morning with what
he has to say about the American administration. The following is a small
portion from his "Economic View":

<<<<
. . . . Navigating the world economy and financial markets through the
present troubled period will require the right policies.  At a minimum it
will require America and Britain to maintain the growth of consumer demand
in the face of declining economic confidence and possible military
setbacks. . . . .

Unfortunately, President Bush is determined to legislate permanent tax cuts
for the very rich, which will greatly increase budget deficits while doing
nothing in the short term to stimulate consumer demand. Unfortunately, this
is all too typical of the incompetence and policy chaos which seems to have
reigned in Washington since Mr Bush came to power.

Washington's inability to hold together an international coalition was not
an isolated event. It was typical of a generalised incompetence which
augurs badly for the global economy in the months ahead. If anything,
President Bush has been even more erratic in his economic than in his
diplomatic management, for example, when he imposed tariffs on steel
imports a year ago; when he abruptly sacked his entire economic team
without even preparing any replacements; and when he proposed manifestly
partisan tax policies which would do nothing to stimulate demand while
hugely increasing long-term budget deficits.

Until last month it was possible to imagine that these were mere random
mis-steps, partly attributable to a lack of focus from the top
decision-makers in the White House. It is now clear, however, that the
quality of decisions in Washington only deteriorates further the nearer it
gets to the top. In the short term, therefore, it is hard to be very
optimistic about the management of the US or world economics,even if we
assume a reasonably benign outcome for the war. . . . 
>>>>






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Keith Hudson,6 Upper Camden Place, Bath BA1 5HX, England
Tel:01225 312622/444881; Fax:01225 447727; E-mail: [EMAIL PROTECTED]
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