The Oracle of Omaha, Warren Buffett, is alleged to have remarked that the US dollar can continue to do nothing but slide if the trade deficit and budget deficit continues to look so godawful. Check out also copvcia.com today; the debt drag on the dollar is assisted by energy costs, which are not triggering inflation (yet…) but are slowing global demand.
Americans are supposed to be pleased that the low dollar will mean more tourists. I don’t think so. I think it would be foolish to think that more Europeans and Japanese will want to visit the US no matter how low the dollar sinks.
