Loonie's ascent not over yet

[TrogL]

http://209.47.1.199/infomart/20040224/1/20040224.001.76.html

The more than 20-per-cent surge in the Canadian dollar over the past year is not over yet, two new reports suggest.

One study, by the Bank of Canada, warns the U.S. dollar may have to fall further to reduce that country's massive trade deficit, while another report by an investment bank argues the Canadian dollar, now trading at just under 75 cents US, could be pushed higher by strong commodity prices.

...

The Organization for Economic Co-operation and Development, for example, suspects that a further 13-per-cent depreciation in the value of the U.S. dollar will be needed, and the International Monetary Fund a further 18 per cent.

I don't understand. How does a falling greenback fix the US trade deficit? I thought the trade deficit was because the US offshored all its manufacturing and call centre jobs.

[mindem]

1. The supposition is that a lower dollar...

will make our goods more affordable and other countries will order more product. Doesn't do our workers much good when everything is being out sorced to other countries anyway. No matter how you look at it the country is screwed under this buch of idiots. More supply side crap.