Trump just signaled the death of Clinton-era strong dollar policy

[Jacob Boehme]

CNBC: http://www.cnbc.com/2017/01/17/trump-just-signaled-death-of-clinton-era-strong-dollar-policy.html

President-elect Donald Trump's shock comment that the dollar is too strong suggests the U.S. is about to declare as dead a two-decade policy of publicly favoring a strong currency.

Anyone have a guess as to what tRuom's hidded agenda is with this BS?

[guillaumeb]

1. If the dollar is devalued imports will drop and exports will rise.

Until the US trading partners respond.

[Yavin4]

2. Not so fast my friend.

Other nations will drop their currency even lower just to access our markets.

[dalton99a]

3. Yep.

[DemocratSinceBirth]

4. A weak dollar will cause inflation.

[guillaumeb]

6. And inflation hurts the rich because it devalues their earnings. eom

[DemocratSinceBirth]

7. It hurts the poor because they spend more of their income.

[guillaumeb]

8. It hurts both.

And it hurts anyone on a fixed income because the fixed income rarely rises fast enough (assuming a COLA applies) in response to inflation.

[bhikkhu]

10. While boosting the value of assets

Especially real estate. Which is why I think we will finally have real inflation problem; trumps net worth will benefit substantially.

[guillaumeb]

11. And as real estate values rise fewer people will be able to qualify for financing.

Further depressing the economy for actual workers.

[guillaumeb]

5. That is what I was referring to when I said "until US trading...etc".

This is nothing but a stunt.

[JHan]

9. More unripe fuckshit from Trump.

[Cicada]

12. His protectionism will cause dollar to rise

When US buys goods from abroad we sell dollars to get foreign currency to pay for imported goods. If we buy fewer imported goods the dollar sales fall. The lower supply of US dollars in currency markets will cause price of dollar to rise.

So Trump may want a weaker dollar - so do I - but his policies will have opposite effect.