Quote:
Originally Posted by directfiesta
Saying it is one thing ... Backing up or explaining is another ...
At this moment, the trade balance is a deficit situation for the USA ...In other words, it imports more ( in $$$ ) that it exports ( in $$$).
A lower dollar will help the US exports ( by being cheaper ), but the imports will be more expensive ( your dollar buying less ).
The only way your blanket statment can be true is if the USA start producing manufacturing goods instead of importing them ... I don't see that in a near future.
|
You are totally confused brah.
I said a weak dollar helps our negative trade balance.
A negative trade balance means we buy more things from other countries than they buy from us.
A weak dollar means the things we sell to other countries are cheaper for them, so they buy more. It also means the things we import are more expensive for us, so we buy less of those things.
If we buy less things from other people and they buy more things from us the trade deficit shrinks.
I also don't get why so many people think that America doesn't export anything. While we are the world's largest importer, we are also one of the world's top 3 exporters.
http://en.wikipedia.org/wiki/Image:U...s1960-2004.gif