The world’s super power has the most powerful economy on the planet, and it just seems to follow that it should also have the number one currency. Sure enough, the greenback rules. Despite a mild economic recession, the US dollar is actually at a 16-year high over other currencies like the Canadian dollar and the Euro.
This is great news for American consumers buying electronic goods and Japanese cars, and clothes from Costa Rica. But while Treasury Secretary Paul O’Neil puffs up his chest about the raw power of the dollar, American manufacturers are crying foul. They say the dark secret of a dominating dollar is a growing trade deficit, job losses here at home and money moving offshore. The last time things got this out of whack the greenback took a dive. If it does that now, recession could follow.
Gail Fosler, U.S. Conference Board
Laurence Kantor, Global Head of Currency Strategy, J.P. Morgan Chase
Frank Vargo, National Association of Manufacturers.