The only way that we can reduce our financial dependence on the inflow of funds from the rest of the world is to reduce our trade deficit.

To finance this trade deficit, the U.S. has to borrow from the rest of the world or sell American assets like stocks, businesses, and real estate to the rest of the world.

The more competitive value of the dollar turned around the trade deficit.

Unless the trade deficit shrinks, the combination of the trade deficit and the interest and dividend payments to foreigners will grow ever more rapidly.

Although economists have studied the sensitivity of import and export volumes to changes in the exchange rate, there is still much uncertainty about just how much the dollar must change to bring about any given reduction in our trade deficit.

A second reason why science cannot replace judgement is the behavior of financial markets.