Asbytec

The U.S. Trade Deficit and the Dollar

Imagine that. We run trade deficits and they buy us out with our own money. I wonder what ever happened to the days when trade deficits were settled in gold.

Good argument for the decoupling myth. China could not buy it's own products, it's middle class is just not big enough. A rough guess, it would have to be as large as the American and European middle class combined (roughly) and about as wealthy.

In any case, I like to hear arguments in favor of a strong dollar. Thanks for the insight.