Slouching Towards Calcutta

That six-dollar gasoline is looking more and more likely:

The U.S. dollar tumbled for the third straight day on Thursday, as super-low interest rates and the crushing weight of a massive budget deficit pushed the greenback closer to an all-time low.

But, hey — the trade gap is narrowing!

The United States trade deficit shrank in February, government figures showed on Tuesday, but economists said the trend could be short-lived as a surge in oil prices affects future reports.

OK, so it’s narrowing for now, and mostly because we can’t afford to buy anything from overseas anymore! By the way, this is exactly how Greece and Italy used to stay competitive, before they got locked into the euro — they’d devalue their currencies to make their exports cheaper. Welcome to Athens on the Potomac.

So don’t you worry about that weak dollar, because Ben Bernanke is going to keep on making more of them.