Fixing our attention on the currency issues is a distraction, and takes our eyes off the core issues that will keep our lead in our economic power. And that is not China's problem. It is America's problem.
Chairman Martin would surely be stunned by the activism of today's Fed -- and the breadth of agreement that it is doing the right thing -- as it drops monetary napalm on dangerously frozen peaks of our financial system.
If we don't stimulate the economy, tax revenues will fall far faster and deficits rise, anyway. But they won't be the deficits of constructive investment. They will be the deficits caused by unnecessarily lost wealth.