Quote:
Originally Posted by V_RocKs
I love it when economists say this just means we will be able to export easier into other countries...
Let me give you some info about that...
Our radios still cost twice as much as Japanese radios so we will NOT be selling any extras.... our dollar will just suck.
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100% correct! That is the core problem and at least a significant reason why the dollar is weak at the moment - there are far too few exports despite the dollar "should" be advantageous.
The last time there was a trading surplus was around 40 years ago - the problem may be with a lack of sufficient manufacturing capacity at a competitive price - tho almost all western "industrialized" countries have that same competitive problem.
The flipside is too much consumption of foreign product (and oil) - if more US manufactured product was consumed in the US (instead of Chinese imports) - that would help balance the books much better.