02-03-2007, 05:20 PM
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pixie of the wood
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Join Date: Apr 2004
Posts: 10,575
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jseal, why is that odd? even taking into account service surpluses, the goods deficit is still huge…about twice as much as the service surplus i think…and the current accounts deficit (macro-wise) is pretty frikkin big, too. foreign income receipts and payments are pretty much a wash, but if confidence in the us dollar drops, those receipts will drop, too. i think it's too much to bank on (no pun intended...ok, yeah it was  ) - that the rest of the world's romance with the us dollar will continue. already the us dollar has lost more value relative to the euro and other major world currencies. if confidence continues to fall, it would affect stock prices, the ability of domestic companies to invest in foreign assets, etc. in the past, we've pressured other countries to buy the us dollar to keep its value stable but if foreign countries don't want the dollar anymore, maybe because we've pissed them off too much, what then?
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