Trump: Dollar Getting Too Strong

Discussion in 'Politics, Religion, Social Issues' started by RootBeerMan, Apr 12, 2017.

  1. RootBeerMan macrumors 6502

    RootBeerMan

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    #1
    *sigh* The value of the dollar is not high, and it's been trending downward for decades, due to the Federal Reserve and the government interference. This dolt wants to wreck us even worse than we currently are. A strong dollar benefits everyone in the US, from mom and pop to corporations. I'd like to see a stronger dollar and go back to pricing as it was in the 60's, when the dollar actually was worth something. This man is going to wreck our economy. If you voted for him you should feel bad.

    https://www.wsj.com/articles/trump-...hina-currency-manipulator-1492024312?mod=e2fb
     
  2. Zenithal Suspended

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    #2
    Poor America will still vote him in because he's a "Republican."
     
  3. Desertrat macrumors newbie

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    #3
    The dollar is too strong with respect to other currencies. That's different from the decline of purchasing power over the years. A strong dollar helps consumers, but it hurts our exports. Our balance of payments has been strongly negative for decades. Basically, a negative balance of payments means that we're exporting our capital--which is why foreigners can buy US assets in the large quantities that they do.

    A weaker currency increases exports, which means jobs. That's why so many other countries' central banks are also trying to lessen their own currency value.

    It's a worldwide currency war, a race to the bottom.

    Jim Rickards has written about this quite often and for many years. Often seen in Agora Publishing's free daily email, "The Daily Reckoning".
     
  4. mrkramer macrumors 603

    mrkramer

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    #4
    Since America was already great he has to wreck it first before he can make it great again.
     
  5. vrDrew macrumors 65816

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    #5
    No. I don't think you understand how economics works. At all.

    A strong dollar makes US-made products more expensive for foreigners to buy. Say that Boeing and Airbus are selling similar airplanes, at roughly the same price: Except Boeing prices its planes in dollars, and Airbus prices its planes in Euros. Now what happens if the dollar rises 25% versus the Euro? Answer: The Boeing plane just got 25% more expensive. Meaning that Airbus sells a lot more planes than Boeing. And US factory workers in Washington and Georgia lose their jobs.

    A strong dollar makes foreign-made products comparably cheaper in the US. Which is nice for people who want to buy cheap Chinese-made toasters at Wal-Mart. But bad news for pretty much everyone else.
     
  6. Bug-Creator macrumors 6502

    Bug-Creator

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    #6
    A strong dollar ( and a massive US trade deficit) will be the case as long as th Saudis an China are selling in $.

    The moment they stop that is the moment when the US is pegged down to just a regional power

    Don't hold your breath.
     
  7. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #7
  8. HEK Suspended

    HEK

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    #8
  9. Dsching Suspended

    Dsching

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    #9
    Because whoever controls currency controls the world.
     
  10. samcraig macrumors P6

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    #10
    You're thinking Spice.

    Wait a minute. He who controls the SPICER....
     
  11. yaxomoxay macrumors 68000

    yaxomoxay

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    #11
    Nice reference!
    In any case Trump is not wrong. The dollar is too strong now.
     
  12. samcraig macrumors P6

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    #12
    So you're tired of winning? ;)
     
  13. yaxomoxay macrumors 68000

    yaxomoxay

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    #13
    Nah just tired, I had a rough night (toothache). :(
     
  14. Desertrat macrumors newbie

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    #14
    Weakening the dollar against other currencies helps that part of the workforce which produces items for export. There are other causes for the dollar to weaken, of course, besides selling them.

    Over time, the dollar will weaken as more countries move away from use of the dollar as the world's reserve currency--and that is happening now. Another problem is that of the Saudis continuing the sale of oil only in US dollars, the so-called "petro dollar". If they begin accepting other currencies, the dollar is toast.
     
  15. AsherN macrumors 6502

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    #15

    Wait, what? Wasn't the Great Pumpkin bitching about Gina manipulating markets but devaulating their currency? and now it's be OK because the US does it?
     
  16. yaxomoxay macrumors 68000

    yaxomoxay

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    #16
    He can't manipulate the currency as China does.
    He can certainly comment on it.
     
  17. Bug-Creator macrumors 6502

    Bug-Creator

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    #17
    Nothing to do with "willing" but just with the markets (over?)reacting to the tiniest nonnews.

    Just as if Merkel would somehow suggests that she wants the EZB to continue creating more € out of thin air.
    Wouldn't change a bit on how many € are created in short term, but exchange rate would drop for the moment.

    There are very few options for Trump to devaluate the $, all will either be bad news or seen as bad news by his supporters (or maybe both).
     
  18. weckart macrumors 68040

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    #18
    It is all a bit more complicated than that as there are many variables in the cost of exports. If you have to import most of the raw materials going into the exports you produce then a strong currency makes securing those materials cheaper otherwise what makes your exports more competitive with a weak currency is either cancelled out by the increased cost of production or your margins take a hit for the sake of maintaining volume.

    Conversely, a weak currency makes the acquisition of your industries and infrastructure cheaper for foreign investors or rivals. It isn't immediately obvious how things might pan out when currencies swing. Some will win and others will lose.
     
  19. AsherN macrumors 6502

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    #19
    Do you seriously think that the President making comments on the value of the USD does not affect the currency markets?

    He may not be able to order the currency to be devalued, but if he says the US is too strong and I'm going to enact policy within 30 days to address that, you don't think there will be a run on the USD towards more stable currencies, thus devaluating the USD?

    **** the Prez says have actual consequenses.
     
  20. Raid macrumors 68020

    Raid

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    #20
    As an economist, you made me smile inside. I'm glad people are finally getting the core elements at play in the economy!

    I thought that was due to lack of demand. :)
     
  21. Mac 128 macrumors 601

    Mac 128

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    #21
    US dollar latest: USD PLUMMETS after Trump comments and rising North Korea tensions - Express
    https://apple.news/AHPdSYuyxM0qymJOHfySTfw
     
  22. NeilHD macrumors regular

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    Jul 24, 2014
    #22
    Given the Brexit vote made the £ worthless, I'm all for the $ getting weaker for the purely selfish reason that my US trips have got a lot more expensive recently!
    --- Post Merged, Apr 13, 2017 ---
    Don't believe ANYTHING in the Express.

    The dollar went down against the £ by about 0.5-0.7c. It has recovered over half of that at the time of writing.
     
  23. VulchR macrumors 68020

    VulchR

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    #23
    If Trump wants to lower the value of the dollar, I hope he'll feel free to buy £, which as tanked since the Brexit vote, thereby wiping out UK wage increases accrued during the recovery.
     
  24. yaxomoxay macrumors 68000

    yaxomoxay

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    #24
    Not my fault if you don't see the difference between a reaction of the free market on a few comments and a government forcibly keeping down a currency for years and years.
     
  25. Desertrat macrumors newbie

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    #25
    AsherN, currency manipulation has been going on since Nixon took us off the gold standard.

    Example: Reagan's people put a meeting together concerning the exchange rate between the dollar and the yen. At the time, it was around 155:1. Buy/sell activity led to a new rate of about 115:1.

    The Mexican Peso was around 12:1 in the 1970s. It rose to 40:1 and then got worse, going all the way to around 3,300:1. They moved the decimal point, so, 3.3:1. it's now almost 19:1.

    Rand, I began paying attention to the Austrian School guys back in the 1990s. As a retired Olde Phart, part of my educational entertainment is reading Casey, Bonner, Rickards and many others. Watching the Fed could be considered as an inducement to acid reflux problems. :D About like foreign policy, for that matter.
     

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