strong dollar

["Stephen F. Diamond" <sdiamond@xxxxxxx>]

Isn't the strong dollar the effect of foreigners continued, increasing willingness to invest in dollar assets, as indicated by the 4-500 bn. net capital inflows into the U.S. economy per annum over the last couple of years?  This would seem to contradict the idea the impact of China.  I tend to think of China, for example, as having a deflationary impact on certain narrow strands of the economy, particularly characterized as having reached near-commodity like production standards requiring relatively less sophisticated labor. Though I am a hawk on advocating international labor rights, particularly in China, I am not in agreement that that is somehow the most dominant issue facing organized labor in the U.S. or Europe, relative to the dramatic restructuring of the jobs that remain and in light of the fact that something like 70% of cross border capital flows are between the triad countries.