The United States is in a fairly horrible financial fix. Basically, private and public debt continues to grow at a staggering and unsustainable rate. Presently, eighty percent of the entire world's annual savings is being used to help finance America's annual government deficits and its imbalances in international trade and financial transactions.
Putting aside the reasons for this, different solutions -- none of them easy or painless -- are being proposed. One suggested solution is, in part, to continue deflating the dollar against other foreign currencies. (This is paired with a proposal to increase the annual inflation rate in the U.S. to 7 percent or more, thus depreciating, over a period of some years, the value of dollar-based financial instruments currently held by others; e.g., central banks throughout the world.)
I understand that all major airplane sales are priced in dollars, and assuming that continues to be the case, I am wondering if, for example, the $-Euro exchange rates continued rising so that it took $1.50 or $1.60 to buy one Euro (up from the current $1.33 or so) a year or two from now, what would that do to the competitive position, from a pricing standpoint, of a 7E7 versus a Airbus 350? Anybody who crunches the numbers have an idea about that?
Thanks in advance. (And I realize the proposals above are an [whatever adjective you want] example of America screwing the rest of the world, but trying to move past that into just how Toulouse competes pricing-wise with the $ and Euro moving so far out of the previous range of equilibrium.)