mrstickball on 28 September 2012
There are a lot of other issues that correlate with the huge imbalance in trade, outside of the inflation of the dollar.
A lot of our manufacturing went overseas around that time due to significant changes in manufacturing regulations, hurting our trade balance significantly. I would note also that the debasement of our currency hasn't been so much the problem, as much as it is that other currencies became free-floating due to the cessation of the Bretton Woods system, and the Nixon Shock.
One could cite Japan as a rebuttal to your argument - they are seeing their strongest currency ever, but are a trade deficit for the first time in 30 years, starting in 2011.
Back from the dead, I'm afraid.
