Thomas Dalton wrote:
The point is,
the non-USD donations are already being spent in the US at
very favorable exchange rates. Go to the UK and that utterly
evaporates, and you suddenly need a much larger income stream to achieve
the same level of spending power.
That's a good point. Nevertheless, it's still a short term
consideration - purchasing power and exchange rates will converge over
time (and then diverge again, of course, but there's no way to know
which direction they'll go in next time).
That's not a given. It depends
on getting the economic fundamentals
right at the national level, like not depending on debt to fuel
spending. It will work as a short term tactic, but cannot be sustained
as a long term strategy. Exchange rates merely reflect purchasing
power, and that in turn is a composite of a number of factors. Some
countries have gone bankrupt in the past, and the old currency became
worthless.
Ec