Rick Perry, it seems, is backing off the death threats but sticking with the substantive critique that the Fed needs to “stop printing the money that’s devaluing the dollar.” That seems like an opportune moment to present an updated version of my chart of exchange rates over the past 30 years:
I note again that there’s nothing wrong with the long-term decline of the dollar relative to other currencies. What we’re talking about here is a period of time during which such countries as China, India, Russia, etc. made major pro-growth economic reforms. Those reforms have been successful and have eroded the centrality of the United States to the world economic situation. But do any of us regret that China abandoned Maoism? Or think there’s an economic reform comparable in impact to abandoning Maoism that the United States could undertake?