"The value of the dollar is directly related only to the number of dollars in circulation as opposed to the market demand for dollars."
And the demand for dollars is a measure of how many people want to buy as opposede to sell them. And - except for currency speculators - that relationship is directly related to our trade deficit. How else do you think people end up with dollars but instead wanting their own currency? Its by shipping us tons of goods and getting payed in dollars. No?
The trade "deficit" is a phony measurement that exists for liberals to have some reason to say the economy is bad during boomtimes because the trade deficit number is always high in a good and improving economy. Foreigners invest their money in a good American economy because it is the safest place for their money.All that investment improves the economy and provides the money with which Americans buy foreign goods. The trade "balance" measures only half of that transaction and will always show more money going out than coming in in a boom because it simply does not measure the money coming in. It torques me to no end when conservatives, otherwise apparently intelligent conservatives, insist on getting all wrought up as a result of a contrived liberal "measurment" for trashing a booming economy.