My theme this evening is that America needs a competitive dollar.

We are particularly poor at the open economy issues.

Even if the dollar does decline during the coming months, the delays in the response of exports and imports to the more competitive dollar will mean that the increase in aggregate demand from this source may not happen for a year or more.

Domestic inflation reflects domestic monetary policy.

We pay some price when necessary to bring down inflation but that price is temporary and is not large relative to the permanent gain from reduced inflation.

After all, an overvalued dollar gives us the ability to buy foreign goods at lower prices. And the existing volume of exports brings more yen and euros than they would if the dollar were more competitive.

But then in April of 1985 the dollar began a sharp decline. The dollar's trade weighted value fell 23 percent in just 12 months and by a total of 37 percent by the beginning of 1988.

I think that over the last few decades, we have seen better economic outcomes than in the past.

Although economists have studied the sensitivity of import and export volumes to changes in the exchange rate, there is still much uncertainty about just how much the dollar must change to bring about any given reduction in our trade deficit.

First, I think the science of monetary economics has clearly gotten better.

But the primary reason for wanting the dollar to become more competitive in the near future is that we may need an increase in exports this year and in 2007 to sustain the economy's current pace of expansion.

The more competitive value of the dollar turned around the trade deficit.

Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out private investment or require higher taxes that weaken growth by reducing incentives to save, invest, innovate, and work.

A second reason why science cannot replace judgement is the behavior of financial markets.

But because we in the United States finance our current account deficit by borrowing in our own currency, we can move to a more competitive dollar without the adverse effects that followed currency declines in other countries.

The price of imported oil in the US doubled between summer 2003 and summer 2005, reducing consumers' purchasing power by more than 1 per cent of gross domestic product.

The good news is that a competitive dollar in the global market and a strong dollar at home are compatible in both the long run and during the transition to a more competitive dollar.

A rise in the level of saving can reduce aggregate activity temporarily but only a sustained high level of saving makes it possible to have the sustained high level of business investment that contributes to the long-run growth of output.

Homeowners who refinanced their mortgages took out cash and reduced their monthly payments at the same time. Much of the cash obtained by refinancing was spent on consumer durables, home improvements and the like.

And finally, no matter how good the science gets, there are problems that inevitably depend on judgement, on art, on a feel for financial markets.

An increase in the relative price of products from the low wage manufacturers in Asia and Latin America will also make those products less attractive to American consumers.

Thirty years ago, many economists argued that inflation was a kind of minor inconvenience and that the cost of reducing inflation was too high a price to pay. No one would make those arguments today.

To finance this trade deficit, the U.S. has to borrow from the rest of the world or sell American assets like stocks, businesses, and real estate to the rest of the world.

The only way that we can reduce our financial dependence on the inflow of funds from the rest of the world is to reduce our trade deficit.

Unless the trade deficit shrinks, the combination of the trade deficit and the interest and dividend payments to foreigners will grow ever more rapidly.

My theme this evening is that America needs a competitive dollar.

In short, both experience and economic theory imply that the US could now t to a more competitive dollar without experiencing either increased inflation or decreased economic growth.

So just as I want pilots on the planes that I fly, when it comes to monetary policy, I want to think that there is someone with sound judgement at the controls.

Inflation is lower and more stable and the real business cycle fluctuations are more modest.

If the Federal Reserve pursues a strong dollar at home while the dollar becomes more competitive in global markets, we can achieve both price stability and a more balanced path of economic growth.

An isolationist America is no bloody use to anyone.

My focus is that firearms are handled safely and that we can continue to enjoy them here in North America.

America is false to the past, false to the present, and solemnly binds herself to be false to the future.

Generally students are the best vehicles for passing on ideas, for their thoughts are plastic and can be molded and they can adjust the ideas of old men to the shape of reality as they find it in villages and hills of China or in ghettos and suburbs of America.

Who cares about that stuff? This is America, not Jerusalem. I'm an American. Let Harry be a Jew.

Disney had such a hold on the mind of America-they were Adolf Hitler. The whole country thought Disney was some sort of god and that animation was some sort of pure thing for children.

The only time I would like to see was the 20s and 30s in America because I love the music and the style and the optimism, I wanted to see New York being built. I wanted to see all that, you know.

I'm about to become a member of the Chemists Society of America. I'm very proud of that.

It's a cyclical thing. When they make one, everyone loves them. Different genres come around in succession. People always welcome the western. It's America's genre.

It is veneer, rouge, aestheticism, art museums, new theaters, etc. that make America impotent. The good things are football, kindness, and jazz bands.

If we can just take a few companies, and use those as models, as examples, to show the rest of corporate America how they can become more competitive, that's what I'd like to do and that's what I hope to do.

The surest way to return to the people's business is to listen to the people themselves: We need to drop this whole scheme of federally controlled health care, start over, and work together on real reforms at the state level that will contain costs and won't leave America trillions of dollars deeper in debt.

Gary Smith, when I came to America, taught me a great deal about racing.

You know, nobody eats in England. Three or four pints of English beer a night fills you. I can't say I'm very impressed with the food in America. it's all sort of bland. Like turkey sandwiches.

Fascism is a worldwide disease. Its greatest threat to the United States will come after the war, either via Latin America or within the United States itself.

I've always thought that if Israel really wanted to solve the problem, they'd just start tomorrow and push right to the Jordan River, and anything in their way goes. They don't need America or someone else to help.

These old ballparks are like cathedrals in America. We don't have big old Gothic cathedrals like they do in Europe. But we got baseball parks.

American and Israel share a special bond. Our relationship is unique among all nations. Like America, Israel is a strong democracy, a symbol of freedom, and an oasis of liberty, a home to the oppressed and persecuted.

All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation.