Everything is cyclical.
Yeaha, a collapsing currency is always the sign of a dynamic and growing economic superpower.
Just look at world beaters like Zimbabwe.
That's a DITTO. Buy low sell high/sell high buy low
Everything is cyclical.
While in theory this is correct, but unfortunately it hasn't played out that way.
The US Dollar hit a high against the dollar index in 2002 at 1.24 and is now at .71. (see chart above, last one on the right)
Our trade deficit has gone from ~423 billion to over 700 billion during the same time period.
http://www.census.gov/foreign-trade/statistics/historical/gands.txt
One more thing that most folks do not realize is that the stock market measured by the Dow Jones industrial average has gone from ~8000 at the start of 2003 to over 13,000 which on the surface looks like a 60% total return.
You may in fact have 60% more cash in your pocket, however, when you go to spend that money it is worth substantially less.
There was a recent Wall Street Journal article about how the S & P 500 is actually break-even over the last ten years when you account for inflation.
The reality is, in constant dollars, you are buying less of everything from milk to oil and everything in between.
I would challenge anyone to go through their day without buying or using something that wasn't made in another country. Your blue jeans go through 6 or 7 different countries before we buy them here.
I don’t agree with your assessment that a weak dollar is good for our trade deficit. It is very bad for our trade deficit. We are a net importer of goods. The additional profits a weak dollar is producing from selling US goods overseas is MORE than offset by an increase in the cost of everything we import. Why do you think oil just hit $112 a barrel. This is a good example of a costly foreign product that is exacerbating the US trade deficit due to a weaker dollar. Sadly, you are dead wrong.