Font Size: Thank Goodness for Trade Deficits By John Tamny Published 12/03/2004 After hitting a 4-½ year low against the Yen last week, and an all-time low versus the Euro, the media reaction to the dollar's fall was mostly positive. The Wall Street Journal said a weakening dollar would "correct the U.S.'s huge trade deficit." The Journal's view was the consensus view despite voluminous historical evidence that perceived trade imbalances are not corrected by devaluations. To begin with, the dollar has been falling for the last two years, yet the trade deficit has continued to rise, hitting a record...