Economist Ed Lotterman says a strong dollar isn't good news for the US
The dollar's current status as “the nicest horse in the glue factory” is a source of pride for some, but on the whole it is bad for the economy.
Moreover, it may get worse, depending on how acute the smoldering problems of the eurozone get. Yet, politicians in both parties continue to prattle on about how they favor a "strong dollar."
That misunderstanding of the effects of an expensive currency is nothing new. As econ students learn, an expensive dollar, unfortunately often characterized as “strong,” means imports are cheaper for us and U.S. exports more expensive to foreign buyers. Yes, that benefits U.S. consumers. But having an expensive dollar is bad for a nation's employment, business profitability and economic growth.
For agriculture, it means U.S. soybeans, corn, wheat, poultry and other exports are more expensive to our historic customers So are the heart valves, pacemakers and other high-tech manufactured goods that are so important in my home town of St Paul, Minnesota. Higher prices mean reduced U.S. export sales and, ultimately, lower prices for farmers and lower profits and fewer jobs in manufacturing.
It also means that anyone competing with goods or services imported from Europe faces stiffer competition. A stronger dollar, for example, means imported cars become cheaper compared to domestic ones.
None of this is new. But the underlying causes of a “stronger” dollar are different now, reflecting critical developments in the global economy.
Richard Fisher, president of the Dallas Fed, hit the nail on the head with his crack about the horse in the glue factory. The dollar is not “strong” now because of anything particularly good in our economy nor in response to the wisdom of U.S. economic policies.
Rather, the world is in a classic struggle of competitive devaluations, even though no official anywhere admits it — and our country is losing. Even China, which grudgingly was allowing its currency to rise in price compared with the dollar, is reversing course and reverting to its historic policy of subsidizing its exports by undervaluing its currency.
Southeast Idaho Farmers Market - News
Should this trouble us as much as deadlock in Washington, continued declines in housing prices or slow job growth? Perhaps not, although the “strong” dollar is one reason for sluggish labor markets. Moreover, it does matter to farmers.
The sun is setting over open pastureland not far from the southeast Idaho town of American Falls. Farmer LaMar Isaak, along with his wife, son, mother and brother, has corralled a small cattle herd – except for one skittish calf.
By PHILIP A. JANQUART IDAHO FALLS, Idaho (CN) - A southeast Idaho family claims the Bonneville Power Administration illegally built a road across their land, which they had specially seeded and preserved as state-designated habitat for wild birds and
When we moved to Idaho from Pennsylvania, I felt disconnected from our previous life—away from family and friends and the familiar. Food was the way we found out about our new home—the taste of place, if you will. The farmers market became a ritual;
Unfortunately, getting food to market has some impediments. The farmers markets and local produce stand businesses have grown, and local shoppers are steering their dollars more and more toward local products. Not only produce, but eggs, milk and meat
Thanks a Lot, Uncle Sam - Courthouse News Service
IDAHO FALLS, Idaho (CN) - A southeast Idaho family claims the Bonneville Power Administration illegally built a road across their land, which they had specially seeded and preserved as state-designated habitat for wild birds and mule deer.
The Judy Family Trust says the Idaho Department of Fish & Game designated their land as wild bird and deer habitat under a soil and water quality conservation program requiring terracing and conservation practices.
But in 2009 Bonneville Power Administration crews used trucks and heavy equipment to build a gravel road 1,485 feet long and 20 feet wide across the protected land, disrupting wildlife and contaminating the soil.
"The excavation crews caused damage to the surface and subsurface of the land, the grade of the land, the wild bird and deer habitat, the soil and water quality conservation program implemented on the land, and the specially seeded flora," according to the federal complaint.
The trust says there were "multiple events of trespass each time vehicles, trucks and heavy equipment performing work for BPA crossed the gravel road BPA unlawfully constructed on plaintiff's land."
The BPA acknowledged it had trespassed, in a Sept. 4, 2009 letter to the family. It took another year and a half to send another letter, on March 31, 2011, apologizing "for its error of placing a gravel road on Judy Family Trust property," according to the complaint.
The trust seeks $178,000 in damages, plus the cost to reseed the land.