…none of the increase in U.S. GDP in the short term will come at the expense of China, Malaysia, or Taiwan. Rather, the bulk of the adjustment to the lower value of the dollar will be borne by the euro area, Canada, Mexico, and Japan.
Read the whole thing, if you wish to feel better (for the U.S.) about the falling dollar.
Overall, the more scare stories you read about a falling dollar, the less you should worry. The Major Media aren’t exactly ahead of the curve on an issue like this. Their scare-mongering means that the real dangers have already been capitalized and digested. It is when you read blog posts like this one that you should fear the worst…
Addendum: Here is a new blog about the global economy, with much on the falling dollar, thanks to Dan Drezner for the pointer. Dan, by the way, is the place to go for analysis and updates on the Ukraine.