U.S. Leaders Not the Only Ones Clueless About Effects of Trade

March 26, 2008

http://activequote.fidelity.com/rtrnews/research_frameset.phtml?page=market_news_main.phtml?intro_page=individual_news_story.phtml%3Fstory=NEWS.CBSMW.8F86AB5237344F819A9C.37156E920336%2526pt=News%20Story%2526parentTitle=Market%20News%2526parentURL=market_news_main.phtml%2526product=ROR/256&provider=CBSMW

These Reuters stories scroll into oblivion very quickly, so the following is the text of the article:

PARIS (Reuters) – President Nicolas Sarkozy has questioned whether France and Britain could not work together to put pressure on the United States to strengthen the dollar.
 
Sarkozy starts a 2-day state visit to Britain later on Wednesday and in an interview with the BBC, he said the two countries could combine forces in many areas.
 
“For example, regarding the economy, could we not together press our American friends so that the dollar climbs,” Sarkozy said, according to a transcript of the interview released by the Elysee Palace.
 
(Reporting by Crispian Balmer)

Wow, it’s incredible that the French leader is utterly clueless about the effect of the U.S. trade deficit on the value of the dollar, and that it’s the rest of the world that determines the value of the dollar, not the U.S. 

Yes, Nicolas, there is something you can do about the value of the dollar.  You can start buying more American goods and eliminate the $8 billion per year deficit we have with France.  And if your British buddies want to help, they can start by eliminating the $4 billion deficit we have with them. 

Pete