Robert J. Samuelson wrote extensively about the U.S. dollar policy (or lack thereof) in a Newsweek cover story last week. His piece was very thoughtful in describing how the United States will be up a creek if the dollar doesn’t grow some legs — recession, national security threats, etc. Samuelson agrees the issue is a “yawner” for most Americans, but maybe another aspect of the story will get the attention of elites like Paris Hilton. The fashion section of the New York Times illustrates just how painful weak greenbacks can be … last year’s Chanel suit jacket was a steal at $2,900, but this year it will cost $4,100.
The once powerful and respected Treasury Department used to manage the dollar with a tight lip and a clear policy. Now the agency is the administration’s black sheep with a very murky dollar policy. Hopefully the short term results are no more family vacations to Europe or one less Prada bag, rather than the doomsday scenario of a bond market dive and global recession. That’s so not hot.
– Anna Soellner