Tilted Forum Project Discussion Community - View Single Post - How/when will the US current acount deficit turn around.

jorgelito · 03-24-2005, 03:04 AM

Thanks Yakk for the clarification. I've "heard" that too. I gotta tell ya, it's been lying in wait and I get an uneasy feeling regarding the "currency bubble". Another thing I don't get, if so many countries are buying US$, then why is the dollar still falling?

So let's play this out:

With the downward pressure on the dollar slow but steady, wouldn't that make our exports more "affordable" or attractive in overseas markets? At least countries that aren't pegged to us. So let's say the EU & Japan.

As US$ goes down, exports to EU & Japan go up?
Increasing revenue in the US, which leads to more production due to demand, which leads to more jobs, more revenue for state & feds? Generally speaking of course.

But, as US$ goes down, oil prices go up even more (because oil is sold/bought on the spot market in dollars)?

Help me out Econ majors or people with a better feel for number crunching...

Oh yeah, Yakk, I stumbled on this the other day. http://biz.yahoo.com/bizwk/050318/b3926054mz011_1.html

I think it will add to our discussion here. I don't have time to disseminate it with y'all, I have my last final in 5 hours andI still need to sleep and study more...AAAAAAAAAAAAAAHHHHHHHH!!!!!!!!!!!!!!

So then, after reading this article, where is the "bottom" and what does it really mean? Are things just cyclical, no big deal, or is there really a potential for financial disaster?

03-24-2005, 03:04 AM	#18 (permalink)
jorgelito All important elusive independent swing voter... Location: People's Republic of KKKalifornia	Thanks Yakk for the clarification. I've "heard" that too. I gotta tell ya, it's been lying in wait and I get an uneasy feeling regarding the "currency bubble". Another thing I don't get, if so many countries are buying US$, then why is the dollar still falling? So let's play this out: With the downward pressure on the dollar slow but steady, wouldn't that make our exports more "affordable" or attractive in overseas markets? At least countries that aren't pegged to us. So let's say the EU & Japan. As US$ goes down, exports to EU & Japan go up? Increasing revenue in the US, which leads to more production due to demand, which leads to more jobs, more revenue for state & feds? Generally speaking of course. But, as US$ goes down, oil prices go up even more (because oil is sold/bought on the spot market in dollars)? Help me out Econ majors or people with a better feel for number crunching... Oh yeah, Yakk, I stumbled on this the other day. http://biz.yahoo.com/bizwk/050318/b3926054mz011_1.html I think it will add to our discussion here. I don't have time to disseminate it with y'all, I have my last final in 5 hours andI still need to sleep and study more...AAAAAAAAAAAAAAHHHHHHHH!!!!!!!!!!!!!! So then, after reading this article, where is the "bottom" and what does it really mean? Are things just cyclical, no big deal, or is there really a potential for financial disaster? Last edited by jorgelito; 03-24-2005 at 03:11 AM.. Reason: grammar