The Brutal Price of a Dollar

From The Heritage Foundation:

Conventional wisdom about international trade deficits, China, and the dollar is confused. Headlines bemoan “dollar jitters,” pointing to the troubling 30 percent decline of the greenback against the euro in recent years. Yet conventional wisdom also seems to believe that China is manipulating its currency and should allow it to appreciate and further weaken the dollar. This kind of confusion is dangerous: It sup­ports the faction of trade isolationists in America while averting attention from America’s real problem of runaway congressional spending.