Kessler Praises the iPod Economy

"You want a scapegoat for the dollar’s almost daily decline — the
Chinese water torture on the U.S. economy? I blame Steve Jobs," says Andy Kessler in today’s Wall Street Journal. Actually, his lead-in is a prelude to a piece praising the "iPod economy." "The $4-trillion-plus in trade deficits
since 1976 has been matched by an $11 trillion increase in value of our
stock market. That’s about all you have to know."

While he overlooks possible ties between the world’s economies (could it be that low prices from Chinese manufacturing continue to help dampen inflationary pressures on the U.S. economy, for instance?), you sure cannot call Kessler a pessimist on the U.S. economy.

Japan is
just emerging 15 years later from a nonperforming-loan hangover. China is
face-first in the punch bowl with half its bank loans uncollectible: If
their currency spikes, it might go to 100%. Rather than debase our wallets, Japan and China have to buy dollar
assets to keep their currencies from rising too much if they want to
continue to sell us their industrial output, while of course, we get rich
selling them the tools to do it productively.

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