Reply #3: Concerning "Truth" [View All]

[idlisambar]

The fact that our debt is in dollars is of some comfort, but it is not the debt obligations that are of greatest importance when it comes to the trade deficit. More interesting are the long run effects on our manufacturing base. It is interesting to ask at what point does it become so weak that even in the case of a huge drop in the value of the dollar (40-50% let's say) we continue to run substantial deficits. If this is the case, and we continue to insist that the value of the dollar is our only corrective lever we are in big trouble.