I have made this point before–I know that it sounds counter-intuitive to say that a strong dollar is NOT a good thing but it isn’t–except maybe for Wal-Mart and American tourists. I certainly have sympathy for tourists, less so for Wal-Mart. I’m reminded of this because of this article in today’s Wall Street Journal:

The dollar crossed the key $1.50 threshold against the euro today before a slight pullback, raising more concerns in Europe about the strength of the euro and the impact it might have on any nascent recovery.

European policy makers have tried in recent days to jawbone the euro lower – and the dollar higher – but markets have largely ignored the rhetoric. A strong euro makes Euro zone exports less competitive and can make imported U.S. goods cheaper.

  So, when you hear the dollar is dropping, put away your patriotic impulse that might make you feel that that is a bad thing. It’s not. Of course, a crash in the dollar is not a good thing. But, a gradual move of the dollar so that its value is reduced to levels is a better thing for the economy as a whole since it means that goods made here are more competitive around the world.