Alttag--US economy is in a "bad state", says Lyndon LaRouche Bangalore: An American politician, Lyndon H LaRouche, on May 26 said the US Dollar would further depreciate due to increased fiscal deficit and current account deficit of the US government.

"USD will fall incessantly, the Dollar is overvalued," LaRouche said at the sidelines of an international conference on "World situation after Iraq war".

He said the US fiscal deficit and current account deficit each were over $ one trillion and the economy was in a "bad state".

LaRouche, a candidate for the Democratic party nomination for the US presidency in 2004, said the US economy was seeing an hyper inflation, industrial production reducing, growing unemployment. "The internal economy is depressing," he said.

He said the US economy, which earlier had witnessed currency inflows from Europe and Japan, would find it difficult as the Euro was becoming an attractive currency and the value of USD would reduce to 1.5 per Euro.

Earlier in his address, LaRouche said the value of USD had dropped by nearly 18 to 19 per cent in the past few weeks, and it had a potential to drop further by 25 to 50 per cent.

He warned that the economic decline would hurt economies of countries in Europe and Asia, even though India and China's economy showed resilience.

He criticised US President George W Bush for the Iraq war and said the ultimate aim of the hawks in Bush administration was to attack China.

PTI