Saturday, November 12, 2011

Can the US export economy be sustained?

Exports as a contributor to the current business cyle is better than at any time in the post WWII period. The idea of having a weak dollar to foster export growth has been working even with the flight to quality to the dollar over of the EU crisis. 

Exports for the US are diversified and not EU dependent. Our key trading partners are still Latin America and Asia, but we are still dependent on overall global growth. If the rest of the world slows, a weaker dollar may not be enough. 

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