Floyd Norris has a great commentary piece in today’s Times, taking on Treasury Secretary Snow’s critics and arguing that we need to rethink the U.S.’s strong dollar policy:
To John Paul Rathbone…such borrowing is evidence that the United States is “taking on the financial characteristics of a banana republic.” That’s a hostile view from Britain. But borrowers need to worry about what lenders think of them. Instead, there is little talk about our foreign financial position, and an implicit assumption that we can borrow all we want, for as long as we want, at very low interest rates. It would behoove Mr. Snow to give some thought to those issues….
Especially if we’re going to continue to borrow to finance our federal budgets.
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