1) Increased exports. Last month’s exports were among the highest on record. Trade deficit? What trade deficit? Boeing, Caterpiller, Microsoft, Apple, etc. all with surges in foreign export sales.
Only 17% of US companies are exporters. Something like 94% of exports are from just 4% of US companies. A weak dollar does negatively affect large sectors of the economy, the increased exports positively affects a very small percentage of the economy.
b
Now, for the other 83% of US businesses in this country, the falling dollar directly affects their bottom lines by increasing costs of commodities. Commodities traded on world markets where all currencies are fungible. And the US Dollar has increasingly bought less in a commodities market where 100% of supply will be bought and consumed even if US purchase and consumption of the commodities drops by 10%.
We can suffer a relatively mild recession here, and have to fight tooth and nail just to be able to regain current levels of consumption on the economic rebound.
There is plenty of mid term and long term bad news involved here.
Non-sequiter. You assume that since X% of American businesses are exporters that the rest are importers.
The largest percentage of American businesses are neither exporters nor importers.
They either supply services or products that are produced here.
Hence the foreign price of the dollar doesn’t affect them.
Weeeeelll then . . .
This dollar fall is happening just in time.
Otherwise in a few more years with nobody buying our expensive stuff, it would be 0%.
Better ramp up that factory production Americans--all the world will be buying more and more stuff from us now.
And the other 96% of companies are mostly paper-shuffling leaches.
Don’t confuse Philistone with facts.
He’s a BushBot, or something.
Maybe he’s Al Greenspan—who put M3’s numbers into orbit.
Or Bernanke, who’s doing same.