heelinhell
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Trump is a genius !
He has inspired consumer confidence such that we are rushing to buy autos, eggs, everything !!! in the soon to be greatest economy the world has ever seen
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Trump is a genius !
“… For foreign sellers of all manner of goods, including cars, cognac and Scottish tweed, the dollar’s steep slide is a double whammy, compounding losses caused by President Trump’s import levies. For central banks around the world, the rapid strengthening of their own currencies heaps pressure to cut interest rates more aggressively.
…
Because of its role as the primary currency used for global trade and finance, swings in the dollar have significant global consequences.
“For exporters, you’re not getting the currency eroding some of the tariff impact for the end U.S. consumer,” said Derek Halpenny, the London-based head of global markets research for the Japanese bank MUFG. “It has a bigger negative impact for sure.” …”
wasn't weakening the dollar one of the goals they stated with the tarifs? (I know they have given a different reason for them every day but...) Something about tired of bearing the burden of being the world's reserve currency or something?“… The decline in the dollar has come as a surprise to many. Economic textbooks teach that foreign currencies tend to weaken when economies are hit with tariffs, helping to make goods cheaper to offset the cost of the levies.
Instead, investors have reacted to Trump’s back-and-forth trade policies by dumping U.S. assets, unwinding huge bets they made in recent years on the idea that the U.S. would economically outshine the rest of the world. As investors sell U.S. dollar assets, they recycle them into home currencies, pushing up their value.
The slide in the dollar has fueled questions about the damage to the American economy from Trump’s shift in trade policy and whether the currency will remain a haven for investors in times of market stress. …”
Yes, it was, but economists have expressed surprise at that outcome under thee policies — pointing to countervailing forces of uncertainty and volatility of Trump’s shifting policy pronouncements and aims negatively impacting the strength of the dollar and bond markets even as his broadly described policies typically would be expected to strengthen the dollar.wasn't weakening the dollar one of the goals they stated with the tarifs? (I know they have given a different reason for them every day but...) Something about tired of bearing the burden of being the world's reserve currency or something?
BTW, here is a good background article on the Nixon Administration response to the Oil Embargo that led to the petrodollar:Yes, it was, but economists have expressed surprise at that outcome under thee policies — pointing to countervailing forces of uncertainty and volatility of Trump’s shifting policy pronouncements and aims negatively impacting the strength of the dollar and bond markets even as his broadly described policies typically would be expected to strengthen the dollar.
The MAGA view is that the weakening dollar proves Trump is right and his madman/chaos theory of international relations also is working in international trade to produce results (weakening dollar despite significantly increasing tariffs) that traditional trade policy cannot — citing Nixon moving the dollar off the gold standard and implementing tariffs to devalue the dollar and improve the competitiveness of U.S. exports in 1971 as the model. [BTW, Nixon’s shock approach contributed to actions by OPEC that greatly strengthening OPEC’s economic power but that is a different story of unintended consequences]
“Markets are processing what’s going on … particularly trade policies … so markets are struggling with uncertainty and that means volatility … having said that [under the challenging circumstances]!markets are functioning the way they are supposed to function …”
“… On Wednesday, during a speech in Chicago, Powell said the central bank needed to make sure that any increase in prices from tariffs didn’t lead to continued inflationary pressures.
“Markets are processing what’s going on … particularly trade policies … so markets are struggling with uncertainty and that means volatility … having said that [under the challenging circumstances]!markets are functioning the way they are supposed to function …”
seriously. the shit these assholes say is unfuckingreal.Classic Dem playbook. Who appointed this guy Powell anyway?