When we talk about how the falling dollar has increased exports, they rarely note what it is that the US actually exports.

We are exporting, “decidedly low-luster commodities like corn, wheat, ore and scrap metal. Commodities are 42% of export increase in the first half of 2008, and manufactured goods, only 12% (Note that this is only the percentage of the delta, percentage of the whole is 26% commodities and 40% manufactured goods).

Part of the reason for this is that much of the manufacturing capability of the US no longer exists. It has been shut down and either shipped overseas or sold as scrap, so there are very real limits to the degree that US manufacturing can take advantage of the dollar in the short term.