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The Dollar's Decline Has a Limit

From seekingalpha.com

This is what the Post was warning about in its article headlined, "The dollar, at risk: U.S. efforts to speed the economic recovery could transform currency's slow decline into a precipitous fall," although it is possible that no one at the paper knows the introductory economics that would allow them to make this connection. Those who have been through an intro econ class know that the trade surplus is by definition equal to net national savings. This means that countries that have large trade deficits like the United States must by definition have negative net national savings. The main determinant of the trade ... (full story)

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