Others see in the dollar's slump a metaphor for America's future — one of decline and waning influence in the world.IBD tiptoed gingerly toward the obvious, but managed to ignore it completely by the end of the editorial. Let's let the dollar drop further so we can celebrate even more. Yaaay!!! George Bush is smart! Strategery!!
To be sure, the dollar is down almost 40% against the euro since 2001. Against the pound, it's off almost 44%. It's even down against the yen, by nearly 13%.
But put in perspective, these declines are neither dangerous nor even undesirable. Over the long-term, the dollar is well within normal bounds. After years of rallying due to massive flows of investment into the U.S., the dollar has simply come down to Earth.
To say it has "collapsed" or "plunged" is simply wrong — as the chart above shows.
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The weak dollar, by making U.S. goods more competitive overseas, will sow the seeds of future growth through booming exports, more domestic jobs and a new surge in investment from overseas to snap up bargains in the U.S.
That's not a cause for concern, but of celebration.
The dollar advanced because the world believed that America--the country that won the Cold War--the country that wired the planet--would lead humanity into the future. The dollar is declining because the world no longer believes that.
Afaic American decline is obvious, but it is neither inevitable nor irreversible. Nor is it accidental. Who benefits? On the left, there are obvious culprits: the trial lawyers, the social-service apparatchiks, the NGO nannystaters, the deathwish Greens, etc. I have no doubt that a similar rogues' gallery exists on the right.
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