[Southack]

"If the dollar crashes the GOP will be blamed for run away spending, huge trade deficits and loss of high paying jobs that bought about the crash."

Look, I hate to just pound on you, but that's just ignorant.

A Dollar "crash" would eliminate our trade deficit.

Let's put your urban myth to bed:

Right now, the U.S. Dollar buys 8.28 Chinese Yuans. If the Dollar crashes, your U.S. Dollar might buy as few as 1 Chinese Yuan. That means that the Chinese flashlight that you just bought at Wal-Mart last year for $1 will suddenly cost you $8.28.

In other words, the farther that the Dollar crashes, the MORE that Chinese products will cost.

The more that Chinese products cost, the LOWER our trade deficit will go (because Americans will be buying fewer Chinese products).

So don't let me catch you claiming again that a Dollar crash would somehow do the opposite by mysteriously INCREASING our trade deficit, as that is the opposite of what would happen in reality.

You've now been educated. You now know better. If you spout such nonsense again, you'll be outed as a troll-spewing propagandist.

[jpsb]

"Look, I hate to just pound on you, but that's just ignorant."

I think you misspoke here, you admit huge trade deficit lower the value of a currency but then you claim I am ignorate for making the exactly that claim.

Please clarifiy your position so that we may have a good debate.

[edsheppa]

If the Dollar crashes, your U.S. Dollar might buy as few as 1 Chinese Yuan.

Not until the Chinese let the yuan float. Which of course they eventually will have to. In the meantime, their currency dives with ours so their imports from the rest of the world become more and more relatively expensive and they will go from being more or less in trade balance into deficit. In effect, they will have to borrow to subsidize my consumption. I find that rather funny.