Having a small capital goods industry, this has led to an increase in imported capital goods, including chemicals, that is being paid for out of newly printed money, not savings. This, in my opinion, has contributed considerably to downward pressure on the dollar. As explained by Austrian trade cycle theory, part of this additional spending will resolve itself into factor incomes which increases the demand for consumer goods which in turn will also lead to an increased demand for finished imports. At this point many tend to find the reasoning rather tricky. As consumption activity rises, manufacturing activity becomes depressed.
Costs rise and investment falls as companies find themselves in a profit squeeze.
Falling output and rising unemployment are bound to follow. But because consumption is holding up, if not actually growing, investment in those services and stages of production closest to the point of consumption can actually rise. It's focussed at the consumption stages of production. This very same process is also happening in America. She, however, has very flexible capital goods and labour markets.