Fiat Lux

It’s a rare day that I get to say something like this, but I think Barry Ritholtz missed the point a little in his smackdown of the WSJ Doctor the Dollar? article today:

When a currency falls as precipitously as ours has, it is, in no small part, a referendum by foreign governments (and their private investors/traders) on a country and its government. We know that the current administration is not particularly popular overseas. Its no coincidence that since they took office on January 20, 2001, the dollar has fallen ~35%.

The dollar has not fallen because foreign governments don’t like George W Bush (although he’s undoubtedly unpopular). It’s the policies this administration has implemented that have caused the dollar to weaken.