The 1980s became known as the “Super Dollar era,” as the dollar appreciated significantly against both the Japanese yen and the German deutschemark, then the U.S.’s most significant trading partners. Not surprisingly, the U.S. trade deficit skyrocketed, as imported goods became more price competitive and U.S. exports suffered abroad.
“That would be an outrageous thing to do,” Michael Strain, an economist at the conservative American Enterprise Institute, told the Washington Post. “It could introduce chaos.” The $13.7 trillion in publicly held U.S. debt constitutes one of the deepest and most important financial markets in the world, forming the bedrock of the global financial system.
The mystery has always been why any Democrat would have wanted to follow the catastrophic presidency of George W. Bush. To understand why, it’s necessary to revisit ancient history, specifically 2001. Given today’s TV- and Internet-shortened time horizon, that’s almost like invoking the Napoleonic Wars, but bear with me. Thanks partly to his skill at […]