Truth
I’m so sick of people like Steve Forbes and Larry Kudlow talking nonsense. Megan McArdle to the rescue:
The good news is, the weak dollar isn’t the catastrophe that some people seem to think it is. While it is falling, it will trigger capital outflow, but when it bottoms, US capital markets will become attractive to foreigners.
It’s the most right-on thing I’ve read all day.
Ooh, soothing balm for my raw ass! I’ll keep it in mind next time I hit the ATM and my dollars morph into Pfennigs.
OK, fine, maybe Kudlow’s right. We should prop up the dollar at least until you get home. Then we’ll commence with all the unpleasant rebalancing that needs to happen.