Quote:
Originally posted by shamrock_uk:
One thing worth remembering of course is that the US is perhaps the only country in the world capable of running a sustained deficit like this, as it isn't going to run out of foreign exchange in the way that another country would. You can look forward to an even weaker dollar though.
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You are correct, we can sustain it for a while. Weak dollars we've been through that before and will go through it again. It Hurts countries exporting to the USA, which mean stronger Jobs at home. There comes a point of deminishing returns though. Where that point is I don't know, I do Know the USA's economy is growing and growing stronger then the vast majority of other countries economies. As of 2000 durring the US recession our GDP was greater then the combined GDP of the EU with less people. For a net of $28,000+- GDP per captia for the USA vs. $23,000+- for the EU avg. I'd be interested in the figures for 2004 when the USA was rolling along like a freight train.