Yes. However, the forex markets have put structural imbalances on the backburner since the beginning of the year. Instead, traders are focused on the growth and interest rate differences between different regions.
I have to admit this. When I saw the title to this diary, I thought of the Monty Pyton Movie "MP and the Holy Grail", where they are in a town and someone is going through the town saying "Bring out your dead".
I know, it's a very morose sense of humor.
Anyway.....Make sure voters remember this during the next election.
Technically you're argument is correct. But the dollar would have to drop significantly to make a difference.
The dollar has risen 10% (roughly) since its lows last year. At those lows, the trade deficit increased. This indicates the dollar would have to drop significantly (15%+) to really effect the trade deficit.
There are a lot of disgruntled Republicans out there, largely over this issue. My Dad is a 1950s style Republican -- socially libertarian, fiscally conservative. He hates this administration. He even voted for Hackett in the Ohio special election.
These are voters we can get. Dems balanced budgets under CLinton. That counts for a lot.