Dear free traders: what will you say when the dollar collapses and imports are too expensive? [View all]

[Zalatix]

Before you claim our trade deficit can't devalue the dollar, please see this:
http://economics.about.com/od/exchangerates/a/trade_deficit.htm

http://www.frbsf.org/education/activities/drecon/1999/9910.html

In fact, the decline of the dollar is already putting a dent into offshoring:
http://mises.org/daily/2883

What will the poor nations of the world do when our dollar collapses and we can no longer buy their goods? What will they do when our foreign-held debt turns us into another Greece? What will the free traders say when it's currency exchange rates, not tariffs, that put a dead stop to offshoring?

Nothing, I suppose. Most free traders argue up and down that the dollar doesn't devalue in the face of huge trade deficits. Which shows they know absolutely nothing about economics.

Feel free to pass this around.