Actually I believe that the latest economic numbers on this showed that both imports and exports were down. So much for the theory that we would sell more to other country’s.
You were incorrect. Search FR, imports were down slightly, manufacturing and exports were up.
Article Link at THE END: From May 10th 2006 but has indicators that agree with your view. Though channelled through the effect the new islamic regime recently coming to power in Iran at that time would eventually have on the Dollar and the world economy. Exports could not to rise fast enough to bolster the weight of a huge dollar drop.
Earlier this year we sent a highest level financial delegation to China to persuade them not to support Iran, which they took as a threat.
They responded that if we dared to do anything to them or to Iran they would put a trillion or two of dollars they had in cash and sink the whole global economy and everything with it.
Advised they would not be immune to the results, they replied that their standard of living is pretty low compared to the USA or Europe and they had enormous reserves of coal they could use for fuel and live without oil after it becomes too expensive to buy. The Chinese stated their people, with the exception of a thin slice of the population - might hardly feel the change in their living standards.
But the Western economies with their higher standard of living and comfort level expectations of the citizens would not be able to handle the deprivations.
With the ensuing crash of other currencies and economies, there would be nobody who could afford to pay for imports (from anywhere) and all the money combined in ALL central banks in the world, which could or would be thrown at saving the dollar would not be able to support the weight of the crashing Dollar currency.
USA factories would quickly not have the finances to obtain raw materials with which to operate. And businesses would shut down in a way that makes the 1930 depression look like a corporate picnic. Unemployment would be staggering and beyond the means of the nation to survive.
http://noiri.blogspot.com/2006/05/oil-story-revisited.html
We are currently on the start of a slippery slope.
“Actually I believe that the latest economic numbers on this showed that both imports and exports were down. So much for the theory that we would sell more to other country’s.”
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Not to countries with low wages. And especially not for Communist countries with low wages.