Ah, but it is *their* problem, not ours. The more that the Dollar drops, the fewer things we import from Europe and Asia.
Even the dimwitted author of the above article manages to notice that the Asians (Europeans, too) are propping up the Dollar versus their currencies.
They have their reasons for so doing, but it is their problem to maintain that artificial support, not ours.
For our part, let the Dollar fall to its fair market value (i.e. that point where imports equal exports).
Bruce Bartlett is one of the smartest economic oberservers out there. Considering you just got a schooling on the causes of inflation and deflation, you should be the last to cast stones.
For our part, let the Dollar fall to its fair market value (i.e. that point where imports equal exports).
There you go again. Read the article. Also read Greenspan's speech from Nov. 19th. The best way to handle the current account deficit is for the administration to balance the budget. Ideally through spending cuts, but that's not going to happen. Sadly that leaves tax increases. Greenspan and Bartlett are warning against a rapidly falling dollar. They are very smart people and there is historical precedent for what they are saying (see 1987 stock market crash) Listen to them and understand. Do some research rather than calling them stupid.