The rising dollar
As the dollar rises ever higher, the dangers are growing for the stability of the world economy; and although the storm has not yet broken, new clouds are appearing on the horizon almost by the day. . . . It could be many years before the build-up of US foreign debt begins to endanger the international financial system or even bring down the overvalued dollar. The world's finite capacity to absorb dollar assets tells us only that the US dollar will fall eventually and that the fall will be the greater the longer it is delayed. The overvalued dollar is threatening many of America's domestic industries and undermining the strength of US economic expansion. One of the greatest dangers to the world economy today derives directly from the domestic effect of the dollar's overvaluation. . . . For as the dollar soars to levels which make US industries totally uncompetitive, America could eventually call into question its commitment to free trade.