An excerpt from my latest syndicated column.
Sometime in the latter half of the 1990s I coined the phrase “King Dollar.” This was back in the post-Soviet collapse period when the U.S. greenback ruled the world currency roost. As the Berlin Wall came down, taking totalitarian socialism with it, global investors and businesses sought the U.S. dollar as their currency of choice. They also chose the American model of free-market capitalism — including supply-side reductions in marginal tax rates — as their economic reform of choice.
The result was the greatest world economic boom in the history of history.
From Eastern Europe to India and China, and points in between, the world has experienced an unprecedented prosperity boom, a story best captured by the unbelievable rise in global stock markets. But along the way, as the world moved toward growth economics and away from central planning, King Dollar began to slide. Not because the U.S. was faltering (as the doom-and-gloom pessimists see it), but more because the rest of the world has been doing better. In other words, the dollar hasn’t slumped because it is necessarily weak, but because the new euro and new market economies are so strong....
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