critical juncture, page-11

To see a specific example of the impact of the weakening USD look at the Google results announcement. Total revenues for the Quarter were $5.37B vs $3.87B previous year.

International revenues were $2.8B vs $1.8B previous year.

According to Google, had the USD exchange rate stayed the same in the June 2008 quarter as it was in June 2007 quarter, revenue would have been $249m lower.

Google's cost structure didn't really change in that period, so Google, in effect, Google earned $249m more than they should have (ignoring their third party revenue share arrangements which would negate a portion of this increase in profit).

If the USD keeps on weakening, US exports will significantly increase their competitiveness (and imports will become more expensive), which depending on the extent of the change in prices will drive higher domestic production/consumption, rather than imported products.

But will that be enough to save the US economy.

Regards
Marvin