Remember when a strong dollar policy meant a strong dollar? Yesterday the greenback fell to a record low against the euro while John Snow repeated the now-empty refrain. Lest anyone should mistake the Bush administration's true sentiments, the Treasury secretary poured cold water on the idea of co-ordinated intervention to stop the euro appreciating still further.

Mr Snow appears very relaxed about recent currency developments: perhaps too relaxed. Yes, global growth is strong. The dollar needs to depreciate further to erode an unprecedented US current account deficit and the sooner the better. But bilateral depreciation against the euro and even the yen and the Korean won as well will not do the trick. It is in the US interest to spread the burden of adjustment more evenly so as to proceed smoothly.