Yes. And as the dollar continues to rise, foreign imports get cheaper and cheaper causing the trade deficit to rise yet again. Floating interest rates are always and everywhere a disaster waiting to happen.
That should have read "floating exchange rates are always and everywhere a disaster waiting to happen.
As are two stiff gin-and-tonics before posting.
“And as the dollar continues to rise, “
If you read the article you’d realize that cannot continue. We are not healthier compared to other currencies by much.
And as the trade and federal deficits decline —the pressure on the dollar is upwards
Yes. And as the dollar continues to rise, foreign imports get cheaper and cheaper causing the trade deficit to rise yet again. Floating interest rates are always and everywhere a disaster waiting to happen.
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the upward pressure on the dollar of falling trade and federal deficits is met by downward pressure on the dollar by the various fed QE’s. The result is that the dollar has been going roughly sideways since 2008.