Trade Deficit Blamed for Sinking Dollar

Here’s a link to a great article by a senior editor at Fortune magazine:  http://money.cnn.com/magazines/fortune/fortune_archive/2007/11/26/101232904/index.htm?section=money_mostpopular

He correctly blames our enormous trade deficit for the sinking dollar.  Unfortunately, he offers no solutions other than to suggest that “we’ve been living beyond our means.”  He implies that we should just save our money and stop buying things.  Unfortunately, that doesn’t target the real problem because we stop buying American-made products as well as imports, doing even more damage to the economy. 

Eventually people will come to understand that tariffs are the only way to restore a balance of trade and that a tariff structure indexed to population density provides the rationale for doing it and the means to do it without adverse consequences from our beneficial trade partners. 

Pete

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