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About 40 percent of America's imported goods are priced in foreign currencies.
The key catalyst for the price of gold moving upward has been its price in foreign currencies.
Eventually, the deficit probably will increase because a strong dollar makes American exports more expensive when priced in foreign currencies.
But an offer to pay 15 to 50 percent of the purchase price in foreign currency, he said, will "often make the scarce materials suddenly available."
But it would also hamper Italian exports, by raising the price in foreign currencies of Italian goods.
He will get 10 percent of the price in foreign currency and the remaining 50 percent in special gold rubles that are worth five times the regular ruble.
But these companies would make up for at least part of that domestic weakness by reaping higher sales overseas, because their goods and services would now be cheaper when priced in foreign currencies.
Why should American investors want to exchange their dollars for overseas equities priced in foreign currencies when the dollar is expected to strengthen, thus cutting into their gains in dollar terms?
Cut the dollar by enough, say by half, and even the last $60 billion of the trade deficit will disappear quickly as everyone rushes to buy American goods at very low prices in foreign currencies.
Earnings from abroad are reduced when they are converted at higher rates into dollars; at the same time, a stronger dollar can make American exports less competitive by raising their price in foreign currencies.