debt
Future Of The Dollar: Belt Tightening Ahead
Submitted by LJM on July 7, 2006 - 1:12pm.
Christian Science Monitor | debt | falling dollar | IMF | trade deficit | Economy

According to this article in the Christian Sciemce Monitor the dollar could fall 25% in our not to distant future. It could be the only way to reduce our trade deficit. If Americans buy less in terms of foreign goods, the trade deficit falls. The hope being that Americans would be able to sell more goods overseas as the lower dollar would make our goods cheaper for the rest of the world. The trouble I see with this thinking is the loss of our industrial base in the United States. We really don't make much here anymore. Companies in the USA who are still in manufacturing have outsourced the factory work overseas in a large part.

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