The U.S. dollar has fallen to recent lows due to reckless Congressional spending, a key Republican lawmaker said on Monday. Rep. Kevin Brady (Texas), the top House Republican on the Joint Economic Committee, called recent proposals to trade commodities with other currencies than the dollar "frightening."
"I think one of the reasons the dollar is struggling -- I think why we're having other forms of reserve -- is because they don't think this Congress will get its financial house in order," he told a conservative talk radio show today. "And that's frightening."
Last week, the U.S. dollar's value fell to a 14-month low against the Euro, prompting alarm among economic observers. Iran, Russia, Venezuela, and OPEC nations have recently discussed the possibility of pricing oil with a currency other than the dollar.
The congressman pointed to the economic stimulus package and other spending measures passed by this Congress as the main causes of the record $1.4 trillion budget deficit reported last week. Brady said than in a poor economy, U.S. investments and the dollar still appeal to foreign investors but that if the budget situation worsens, then "we'll be one of those countries others will shake their heads at."
He proposed a number of programs cuts, which included entitlement programs, and a cap on federal spending as remedies for the budget gap. Brady predicted, however, that the situation would get worse under the current Congress.