[quote=briansd1]
I said that we will be less rich relative to others. American tourists won’t feel rich when they travel abroad. [/quote]
True, American tourists will feel less rich. That’s the price of weaker dollar.
In many countries, they feel less and less rich anyway. Russia has had 10% inflation for the last decade. Meaning that prices of everything go up 10%/year and exchange rate stays the same. The cheapest decent hotel in Moscow is $150/night. The standard bribe to avoid prosecution for DUI is ~$500. When I go there, I don’t feel particularly rich.
[quote]
American power (economic and military) is a function of how much superior we are to others. As our currency erodes, our world dominance and influence will erode as well. [/quote]
Superiority is about skills, technologies, and capital, not relative prices of hotel rooms. Arguably, what’s gained from the cheap gas for SUVs and cheap entertainment for tourists is more than offset by skills and capital that was lost when manufacturing was outsourced to China.
