Could the Debt Ceiling Fight Eliminate the Trade Deficit and Create Millions of Jobs

Adam Davidson raised this possibility in his discussion of possible ramifications of the debt ceiling battle. He suggested that one possible outcome is that investors and foreign central banks cease to view the dollar as the world's reserve currency. This would lead them to switch their dollar holdings to other currencies. The result would be a decline in the value of the dollar.

This is exactly what is needed to make U.S. goods more competitive in the world economy. If the dollar were to fal...