Memo to Obama: Bring Plenty of Dollars With You to China

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No matter what Republicans say about the health-care overhaul, the scariest bill is the U.S. dollar. If you think Barack Obama's sparring with Congress over health care is difficult, just wait till he starts talking about the dollar with China.

The Chinese did just send out friendly signals about the dollar and the yuan. Cam Hui talks about that this morning on Seeking Alpha.

Wall Street generally likes the weakening dollar, because it makes U.S. exports more valuable. On the other hand, inflation lurks around the corner if the dollar collapses or slides too fast. (Don't worry: It wouldn't be like Zimbabwe's staggering currency collapse and inflation.) Not to mention that China and Japan would see their trillions of dollars in U.S. debt lose even more value.

The WSJ's Mark Gongloff mildly rebukes Wall Streeters this morning by saying that "the case for a weak dollar isn't strong."

For background, see the Financial Times's "Dollar Under Pressure" cluster of stories.

Other bad news this morning: The Fed is likely to raise interest rates around next September, right before the midterm elections, according to the WSJ's latest survey of economists. Ouch.

But good economic news for New York City: Reporters from around the world and from what's left of the U.S. press will flock here for the just-announced trial in federal court of Khalid Sheikh Mohammed and other Gitmo detainees. Spend your money on our hotels and restaurants, please.