The Financial Post reports in its Tuesday, Sept. 1, edition that United States is pursuing an inept and confusing economic and foreign policy. The Post's guest columnist David Rosenberg writes that Kevin Warsh comes into the Federal Reserve at a time of nearly unprecedented dissension. There are more than just three voting dissenters who want to hike rates; it's more like nine of the 18. Tightening into a 1.5 per cent demand growth environment when the supply-side potential is closer to 2 per cent is a prescription for a policy misstep. While inflation expectations have remained tame, the impact of trade policy and the Iran conflict have caused measures of inflation uncertainty to hook higher, and that feeds into the risk premium in Treasuries. Mr. Rosenberg says he is not in the dollar debasement camp, but there are reasons to worry about a looming dollar bear market. When the dollar strengthens, the black ink on the capital account is overwhelming the current account deficit, which is 3 per cent of GDP. But when the capital account shrinks, as in net capital inflows from abroad, that is the cause for the dollar's descent. It all boils down to confidence.