Quotes from Roubini-Setser

10% export growth sounds good, but 10% export growth combined with a 10% import growth implies a substantial--roughly $50 billion--widening of the trade deficit. 10% export growth and 5% import growth only reduces the trade deficit by about $25 billion

Foreigner inflows have moved from financing private sector investment to financing the growing (Federal) budget deficit.

In other words, even if the U.S. is only half way through a 20% decline in the dollar against all currencies, the U.S. has realized far more than half of the potential valuation gains from dollar depreciation by depreciating first against Europe, Canada, and Austrialia.

The first Quote states functionally little gain can be made in the Trade balance without reduction of current levels of Imports. The second Quote outlines the real Culprit today consists of Federal budget expenditures without taxation in the NIIP and Current Accounts imbalance. The third Quote assures that Dollar devaluation will not be the panecea for the Current Accounts imbalance; We must attain a Trade surplus to reduce the Current Accounts imbalance. lgl