Typically exports benefit when a country’s currency is weak, the current US economy is not typical. Our number one export is financials (stocks and bonds), and as the dollar goes down so does the foreign investor’s investments. Flight to quality used to mean US Treasuries, but if you are a foreign investor US Treasuries are junk. How much is the CANADIAN dollar up on the dollar over the last 6 months, Euro, Yuan, etc. That means US Treasuries have a negative yield. Every Fed cut hurts the US’s number one export. If foreign investor’s cash out, who is going pay for the US consumer’s spending binge, not the US. US savings rate in negative.
