[Paul Ross]

Where is the relationship prior to 2001?

Guess you didn't read Greenspan. The chart doesn't need to provide "proof" pre-2001 of a relationship, as the theoretical fundamentals are "Adam Smith" axiomatic and well known. And the chart admirably demonstrates what has happened since.

Did you read the Greenspan article? Do you claim to know better than Greenspan? He thinks the falling dollar has to dissuade imports and rebalance trade at some point. I personally am not sanguine about the prospects, and believe currency debauchment unwise, but I certainly HOPE he is right.

The question is, are the countervailing strategic economic policies (i.e., securities reinvestments in U.S. treasuries) of the exporting countries finally being overwhelmed by the general drag on the markets they have effectuated?

Have we reached, indeed, gone beyond a tipping point?

[Toddsterpatriot]

The chart doesn't need to provide "proof" pre-2001 of a relationship, as the theoretical fundamentals are "Adam Smith" axiomatic and well known. And the chart admirably demonstrates what has happened since.

You provide a chart to prove a relationship. The title of the chart, if you were right would be "Here Is the Dollar-Deficit Relationship" The fact that the title asks "Where Is the Dollar-Deficit Relationship?" shows that it is not there.

And the relationship is only true since 2001? You know the funny thing about real relationships is that they're true for more than just a 4 year time frame. Especially since the 4 years before 2001 work against your claim of a relationship.

Correlation over the last 4 years is not proof of causation.