President Donald Trump on Tuesday said he has no problem with the sharp decline in the dollar that’s been triggered by convulsions in global bond markets and growing skepticism about the U.S.’s reliability as a trading partner.
“I think it’s great,” Trump told reporters in Iowa when asked about the currency’s decline. “Look at the business we’re doing. The dollar’s doing great.”
Trump has long maintained that a weaker currency helps industries that he’s seeking to boost — particularly manufacturers, but also oil and gas. And U.S. corporations that export goods and services abroad typically report stronger earnings when they can convert foreign payments into a weaker greenback.
A lot of the US’s soft power comes from the US dollar. Yet another way to undermine their own country. Valodja must be ecstatic.
And U.S. corporations that export goods and services abroad typically report stronger earnings when they can convert foreign payments into a weaker greenback.
Is my smooth brain processing this correctly?
He wants a dollar to be less valuable so that a company can convert their foreign sales into “more” US currency, saying “hey look, because of Trump I made $1billion” but that $1 billion is actually only as valuable as $500 million would have been? So we can all go “hur dur big numba good good!”
Is that it?
Ha, I’d say to try not to align anything he does with logic - you will likely not be able to make much of a connection, unfortunately. Your smooth brain processing still isn’t smooth enough to be at their level.
Damn, I’m still not stupid enough to comprehend their greatness lol
He’s just pushing for whatever Putin tells him to do.
Yeah, but don’t worry, they defeated inflation!
Except that the company does make actual profit from the declining value of its employees’ salaries.
So does Putin.
Probably a coincidence
So the motherfucker can buy the dip and profit from it - I’m sure is what he’s thinking
Conventional wisdom is that a lower dollar is more attractive to manufacturing. So unfortunately MAGA voters will uncritically believe him.
I mean, a weaker currency really does boost your export value. That’s why Canadian farmers tend to consider the weaker CAD a benefit - they get paid more CAD per yuan when exporting soy or canola for example.
The issue is that the US intentionally positioned itself with a strong dollar so they can import stuff cheaper. The deal for American “exorbitant privilege” was essentially “hey America, you can have the world as your shopping mall with a strong currency for cheap imported goods, but in exchange you’ll provide the backing for collective defense with your extra budget, stay stable, and buy our goods”. Trump wants to have his cake and eat it too, maintaining the effective global tax via USD transactions but also have a weaker dollar for American exporters. This is all that hubbub about “reducing trade deficits”… which were created intentionally as part of that deal in the Bretton Woods/post-Bretton Woods Era.
US consumers like cheap phones, TVs, imported fruits, and travel. The strong dollar is a necessity for this. Much of the US debt is heavily subsidized as a side effect of a strong dollar as part of that exorbitant privilege exchange. They can have their weaker dollar but they’ll lose the benefits from it and I don’t think they’ll accept that easily. Throwing all that away to strengthen your export market is deeply foolish, but the mechanisms at play do work generally as they claim.
And if you’re a rich person it affects your finances essentially zero while hurting consumers far worse.
Not true. Keeping your investments outside of the US while the dollar sinks lets your money go a lot further in the US.
The point being a person with a few billion will still be able to buy pretty much whatever they want while everyone else struggles.
Not the actual worth of the currency.
My point is that they will be even richer in comparison.
Hm, the markets seem to disagree this morning…
Not sure what the markets have to do with anything but the DJIA has been down pretty much for 5 days straight. The USD as well, brief spike but down steadily over the last ~week.
So yeah, dollar weaker with a market decline.
Trump says it’s great, what he thinks is that little girls feel good. Release the Epstein files.
