>So then the dollar falls in value until they start buying our goods.
>It's a problem.
Yup, it's a problem. But will they buy enough of our goods? And which goods? Chicken and oranges? Or Pentiums and 747s?
Goldman Sachs did a report the other day estimating that the dollar would have to fall by over 40% to balance our c/a. That's a big drop that could have some serious effects on the financial markets and the exports of other countries. And if we import less and export more, out of whose GDP will that come?
> But because of the unique and peculiar role the $$ plays as world
>unit of account, it would be (IMHO) a problem rather than the
>catastrophe it would be for nearly any other country...
True, but the scale of the U.S. is so huge that it could be messy.
Doug