We’ve said that as bad as things are here in the U.S., at least we do have the strongest/least bad economy among developed countries- i.e., we’re the world’s tallest midget.

King Dollar is back.

Just in the first four months of 2024, we’ve seen an appreciation of the dollar versus almost all other currencies. This should help tame inflation somewhat as a higher dollar value makes imports cheaper, of course.

The dollar’s strength reinforces our continued skepticism and even contempt for the idea that the Euro or the BRICs nations (Brazil, India, China, and South Africa) will invent a currency that displaces dollar supremacy.

It ain’t happening.

Fidgety investors aren’t going to suddenly rush for safety by betting on the Chinese yuan and the Russian ruble. Has anyone noticed that Europe and Japan are a mess? The Japanese yen has fallen to its lowest level relative to the dollar in 30 years, and only yesterday is Tokyo intervening to stop the slide.  No fiat currency run by central bankers is currently a threat to the greenback.

So for now the dollar is king, but what worries us about the outlook for global growth and prosperity going forward is this: what happens if liberal policies, including the highest tax rates in 40 years, and a renewed war on energy (see below), on top of the already wobbly U.S. economy?

Then where will the growth come from? Nigeria? Poland? We hear good things about Costa Rica. The whole world economy may depend on a renewal of the great conservative ideas we know work.