I appreciate the thoughtful response.

But I think you are mistaken. There’s no proof that a stronger currency is worse for a country. There’s quite a bit of proof that a weakening currency is at least, not a help.

Consider a long term chart of the US dollar index. That’s what we’re talking about here: the US dollar’s strength related to other leading currencies.

The index has been falling steadily for 40 years. In that time, the US has gone from the #1 economy by a long shot to barely holding onto that spot with China barking at the heels. If any major currency has strengthened more than China’s vs. the dollar over the past 40 years, I’d like to hear about it. And yet, China has vastly increased both its wealth and its exports and the overall prosperity of its citizenry.

Moreover, the index doesn’t have much rhyme or reason for stock prices. Stocks were soaring along with the index in the early 80s, and stocks did quite well as the index rose going into the early 2000s.

Japan is another case, their currency is one of the strongest and it has been for a while and they are one of the richest countries in the world. The Yen rose in value, like China, as the country became more prosperous. Even as their currency has been strong, they have a net surplus of exports that’s higher today than it was 30 years ago. In fact, it’s at its highest rate ever despite a currency that only seems to appreciate.

That suggests there’s something else going on. The inflationary devaluation of a currency can have the effect of lowering the cost of goods for export, but it also has a more or less equal effect of raising prices domestically.

Again, I have to consider the consumer, who is the real beneficiary of having a more valuable currency rather than a less valuable one. A richer consumer can spend less, save more, invest more and have a higher standard of living. All of those things improve prosperity.