Even With Weak US Dollar, Trade Deficit Still Grows

Hey, isn't one the alleged benefits of a weak dollar that our products would be cheaper overseas? That is, of course if we still made anything of value. But no, even that doesn't seem to be working in our favor any more.

A weaker dollar may boost the nation's economy by increasing exports and narrowing the trade gap — but that won't happen anytime soon. Instead, the nation's trade deficit rose in September by the largest percentage in a decade as U.S. exports grew for the fifth straight month, but imports rose faster, a government report showed Friday. That trend is likely to continue until the middle of next year, economists said.

Rising oil prices and higher purchases of foreign goods by U.S. companies drove imports higher. So did more purchases of foreign parts by U.S. manufacturers, which are ramping up production in the fledgling economic recovery.

Weak dollar no quick fix for narrowing trade gap - Yahoo! News

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Broken Record? Gold Hits Record Hit, US Dollar 15 Month Low

Is this starting to sound familiar to anyone else but me?

The Gold rally resumed once more on Wednesday as prices rose more than $15 an ounce, spurred on by the US Dollar’s seemingly endless decline, which continued today as renewed optimism over the economic recovery led to dollar selling. Investors moved away from the greenback in favour of more high risk, higher yielding assets.

As the Dollar fell to 15-month lows Gold pushed higher setting yet another record and was last changing hands at $1,117, meanwhile longer dated 2010 futures breached $1,120.

SOURCE: Proactive Investors UK - Gold chalks up another record high after US dollar hits 15 month low

Geithner Wants Strong US Dollar

Yeah, don't we all little Timmy. The reality is the rest of us really can't do anything about it, but you and your boss can. The real question is: will you?

Don't hold your breath kids.

Treasury Secretary Timothy Geithner said on Wednesday he believes strongly in the need to maintain a strong dollar and said the United States was determined to get its budget deficit down.

The dollar's decline has been a source of concern in the export-heavy region, especially since top exporter China keeps its currency's value closely managed against the U.S. dollar and so felt less impact on prices for its exports than other Asian nations that let their currencies float freely.

"I believe deeply that it's very important to the United States, to the economic health of the United States, that we maintain a strong dollar," Geithner said in a meeting with Japanese reporters at the U.S. embassy.

SOURCE: Geithner wants strong dollar, will tackle deficit | Reuters