News and Information
Economists Warn of U.S. Dollar Weakness
Oct. 12, 2009
Photos courtesy of AP, CNBC
Malpass (left) is the former chief economist
at Bear Stearns; Kudlow (right) served as
an economic advisor in the Reagan admin.
David Malpass of Encima Global LLC and former Reagan economic advisor Larry Kudlow of Kudlow & Company are starting to sound the alarms of an increasingly weak U.S. dollar. Last Thursday, the dollar fell to its lowest point against the world's other major currencies since August 2008.
"No countries have devalued their way into prosperity, while many -- Hong Kong, China, Australia today -- have used stable money to invite capital and jobs," wrote economist David Malpass last week in a lenghthy Wall Street Journal opinion editorial.
Malpass also criticized the current administration for using the Treasury and the Federal Reserve to rechannel bank loans to governments and big businesses rather than smaller ones, which generally are more competitive and create more jobs.
