10% improvemnet this year doesn't mean an improvement If oil holds 70-80 level will add additional 100 bln to trade deficit and it will be aain at record highs budget deficit improved but they don't include war bill into budget so they still half of trillion in the red They need to shrink trade deficit at least 50% and stop spending 200 bln a year for the war. While it's not done dolla will slide to new lows
The impending economic changes triggered by demographic forces are not unique to the U.S. and in the coming future economic situation of many areas of the globe will be shaken up. Some people believe that Europe is immune from the economic conflict between the U.S. and Asia, and point to the strength of the euro as evidence of their position. This is simply self-delusional. Current high valuation of the euro vs. dollar may be rooted in part in the American current account deficit.But in turn is already reflecting European decline. If Europe were economically and demographically in better shape European imports would be higher due to healthy domestic demand.America's trade deficit in turn is not just an indication of profligate am. spending, but a reflection of Europe's endemic stagnation and decline German source Reminder! America ran a trade surplus during the Great Depression. From what I know about price levels in Europe, they are going to be paying the price for not being able to adjust to the world economic realities in time so to speak. Also compare: biggest euro economy-German is burdened by long term liabilities worth of 270% of GDP. U.S. 100% To the brain-dead who think euro replaces $$, keep dreaming.