Yes, that was very interesting. He makes some important points about the unsustainability of the current inflationary policies. But he does advocate the fallacious labor cost theory of current account deficits. If high labor costs were really the cause of the US current account deficit, then countries which have even higher labor costs like Sweden, Belgium, Germany and Switzerland wouldn´t be running hugh surpluses.
While low cost Eastern European countries like Estonia wouldn´t be running even larger deficits (in relation to GDP) then the United States. And actually contrary to his claim low wage Mexico has a current account deficit (And Thailand had in fact a larger deficit then the US before its 1997 meltdown) Current account imbalances are basically caused by differences in the savings and investment. His objection that devaluations strengthen (decreases deficits, increases surpluses) current account balances are true but does not contradict the theory. Devaluation will make it more expensive to use goods at home for both investment and consumption and thus increase the tendency to “export” savings offshore by reducing both consumption and investments.