I don't think we've seen the impact of the drop in the Dollar over the last year. It seems likely that the trade deficit will start dropping soon.
Edit: I didn't mean to rubbish your "eventually", only to highlight it. It's a long term problem, but the trade deficit/current account deficit goes up and it goes down often and the fluctuations are based upon items with a much shorter time horizon.
Edit: I didn't mean to rubbish your "eventually", only to highlight it. It's a long term problem, but the trade deficit/current account deficit goes up and it goes down often and the fluctuations are based upon items with a much shorter time horizon.
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