National Memo: Strong dollar advocates make weak case
http://www.nationalmemo.com/content/strong-dollar-advocates-make-weak-case
Jan. 20 (Bloomberg) -- In almost every recent Republican presidential debate, some candidates have advocated for a “strong dollar.”
Among the more extreme views are the push by Representative Ron Paul for a return to the gold standard and the statement by Texas Governor Rick Perry that Federal Reserve Chairman Ben Bernanke may have committed treason, a crime punishable by death.
What gets lost in this clamor is any discussion of winners and losers from a strong U.S. currency, and the recent correlation between the greenback’s strength and declines in the stock market.
...
In recent years, however, it has become easier for U.S. companies to produce cheaper goods abroad that are then sold to American consumers. In many cases, the owners of these businesses have benefited from a strong dollar even if American workers haven’t. Still, those workers also may directly benefit from a weak dollar because it reduces their personal debt load in real terms.
