The Only Way That We Can Reduce

But Because We In The United States Finance Our Current Account Deficit By Borrowing In Our Own Currency, We Can Move To A More Competitive Dollar Without The Adverse Effects That Followed Currency Declines In Other Countries.

The Good News Is That A Competitive Dollar In The Global Market And A Strong Dollar At Home Are Compatible In Both The Long Run And During The Transition To A More Competitive Dollar.

Unless The Trade Deficit Shrinks, The Combination Of The Trade Deficit And The Interest And Dividend Payments To Foreigners Will Grow Ever More Rapidly.

After All, An Overvalued Dollar Gives Us The Ability To Buy Foreign Goods At Lower Prices. And The Existing Volume Of Exports Brings More Yen And Euros Than They Would If The Dollar Were More Competitive.

A Second Reason Why Science Cannot Replace Judgement Is The Behavior Of Financial Markets.