Can U.S. Remain an Island of Stability in the Global Economy?
“But from a stability perspective, when things are more unstable the United States in some ways gets stronger” as both people and invesment dollars gravitate to the nation’s relative stablity.
.. The American industrial sector is groaning under the weight of a strong dollar, which drives up the price of exported goods.
.. The longer other global economies remain a mess and the United States remains on a relatively steady course, the more these same forces will reassert themselves. This means that an ever-strengthening dollar will hobble American exporters while fueling an American consumption binge. Broadly, it would mean that crisis-era hopes of a more balanced global economy might not come to fruition.