In today's Financial Times Yale professor Jeffrey Garten provides an interesting perspective on the implications of a falling dollar as well as a mix of policy recommendations to prevent the current dollar drop from turning into a rout. Among his recommendations is a proactive Treasury policy of engagement with foreign sovereign wealth funds in preparation for a potential onslaught of foreign acquisitions of U.S. companies. Garten makes the point that the falling dollar could bring about a rise in nationalist-protectionist sentiment as U.S. firms are increasingly targeted by private sector and sovereign suitors.

We expect an increase in financial-services industry targets here in the United States, particularly originating in the oil-rich Middle East. We have witnessed already a strategic shopping spree by the U.A.E., with the DIFX/OMX/Nasdaq/LSE deal, and AbuDhabi's stake in Carlyle. With other sovereign funds such as Qatar Investment Authority, Temasek, newly capitalized China Investment Company Ltd., the stage is set for some compelling political-economic theater.