[Paul Ross]

The biggie, though, is oil. We can make our own computers, autos, etc. We simply choose not to since we can buy them overseas for less.

Except...those computers and autos etc....were how we were formerly able to pay for the oil. We had a trade surplus in those same manufactured goods. Now we have blithely assumed that manufacturing is of no account... our creditworthiness will go the same way. As the combined deficits of energy and manufactures drain our capital.

[Toddsterpatriot]

Now we have blithely assumed that manufacturing is of no account..

LOL!

[Brilliant]

You're missing the point. We CAN build computers. If the cost of computers from China goes thru the roof tomorrow because of the declining dollar, then we'll build our own, and we'll even export them and use the proceeds to buy whatever we want.

The main thing we can't do here is produce oil. That's one thing we'll have to buy from abroad. And it's the largest single component of the trade deficit, so it's gonna drag down the dollar.

If we want to strengthen the dollar, then the way to do it is to find ways to import less oil.