Quote:
Originally Posted by pocketkangaroo
Low dollar means imports will decrease and exports will increase. One of the reason we had such a huge trade gap was because the dollar was so strong. This should even things out a bit.
|
The theory sounds good pk, but reality is a little different. But, sure, there should be at least some increase in exports which will obviously help.
Reality is the 40ish year trade deficit and a reliance on imported product. Can't see that changing one bit other than an an upwards cost of imports (because they are gonna be paid by currently weak dollars). Imports grossly overwhelm any exports and it would take a total industrial revolution to begin to balance that scenario and have "exportable goods" to offer.
For good or bad - tho suspect more bad, - the dollar will continue to decline for... who knows, but possibly ten years ahead. There is nothing on the horizon to give any hope of otherwise and a serious debt problem where utterances from the Fed and ex-Fed reps suggest a problem even paying interest on the debt. This is total shit news and not helped by the stupid oil consumption which contributes to around at least 30%+ of the trade deficit. If that was reduced even fractionally - it would help a lot, but not likely to happen. The sooner "someone" addresses this problem, the better. It is being ignored by the current incompetent mob who obviously just don't care.