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.
Come on everyone will want to hold their reserve currency in a sinking dollar because it’ll be worth more!
To notch Trump math right there.
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?
The thing is, that billion dollar is worth a billion dollars of stuff. A weak currency is not the same as inflation. It’s just the value of your currency compared to all the other currencies.
If you are doing manufacturing, then having a weak currency is good. You buy raw materials locally, you take those abroad and sell them, and then you have more US dollars to buy raw materials again.
If you’re importing, though, then the opposite is true. You prefer a strong currency. The USA currently imports more than it exports.
Giving the boffins in the White House the benefit of the doubt, maybe they want to strengthen the manufacturing industry within the USA? They are losing pretty badly to China on that front. (China intentionally keeps its currency weak for this purpose, BTW). It’s pretty clear that the USA wants a war with China, but that’s pretty difficult to supply if you can’t actually make anything locally.
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.
He’s just pushing for whatever Putin tells him to do.
Damn, I’m still not stupid enough to comprehend their greatness lol
