[legion]

The nice thing about markets, is that they are self-correcting (barring government intervention).

If left to its own devices, the dollar would deflate, making the purchase of U.S. goods more attractive, which in turn make investment in the U.S. more attractive, which would inflate the dollar.

But governments can't keep their hands out of things, can they?

China heavily subsidizes it manufacturing, and effectively has tarrifs on foreign goods. Meanwhile, the Fed (which we want to be independent and not controlled by politicians) is lowering rates to appease the stock markets, further delfating the dollar.