[habs4ever]

Reducing the trade imbalance means the balance has to be maintained from some other source.Its all an income identity, so where do you think that the shortfall should be made up? Raising real rates to increase domestic savings? Contracting government spending or icreasing the budget surplus? The US needs in fact a larger trade deficit right now, and I hope it grows.

[beekeeper]

Talking about buying US, since the dollar goes down and imports rise. Truth is, when that happens, most imports do not increase in price, since the importer would rather lose a little short term to keep market share. But it does help the domestic market by making US goods more competitive. as long as the US manufacturers keep prices in line. GM and others step on their feet often by not going for market share and instead go for the quick buck.