aussie dollar another blinded bull problem, page-11

kacy...as Prophet also pointed out, USA has a trade deficit with most countries it does business with. Hence it imports more than it exports. Goods from China might still be cheap but not as cheap as before when the US dollar was stronger. A weakening US dollar fuels inflation.

So, many countries enjoy a trade surplus with USA and hence have alot of US dollars in their vaults. Much of this has been invested back into the USA by purchasing bonds, properties, stocks. The declining dollar makes those assets less valuable for foreigners.

USA's consistent trade deficit, which is at record levels, has fuelled much of their growth. A weak US dollar will slow this growth.