This last week’s tariff war to idiot flip flops caused the market to be spooked and lose trust honestly in some ways. You got a sell-off on US bonds, to seeing the Euro grow in strength.
What the hell is Trump trying to achieve with this, devalue your currency for cheaper exports?
I don’t honestly see a fucking pro as a person that travels internationally sometimes. Devaluing your country’s currency isn’t a fucking hot idea trust me many Turks know this voodoo economics. It’s the most idiotic thing you can wish on people.
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This last weeks tariff war to idiot flip flops cause the market to be spooked and lost trust honestly in some ways. You got sell off on US bonds, to seeing the Euro grow in strength.
What the hell is Trump trying to achieve with this, devalue your own currency for cheaper exports?
I don’t honestly see a fucking pro as a person that travels internationally sometimes. Devaluing your countries currency isn’t a fucking hot idea trust me many Turks know this voodoo economics. It’s the most idiotic thing you can wish on people.
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All I can think is that he thinks he can replace USD with $TRUMP
The simple explanation of “he doesn’t understand economics and has surrounded himself with advisors who also don’t (except for Bessent who he ignores)” works pretty well.
One answer, the man a fucking moron.
Second answer, part of this ‘make America a manufacturing country again’ is the problem with the cost. Both for the investment, to develop industry, and pay workers.
The whole iPhone would be $2600 when made in American etc.
One such way to make that easier … tank the dollar. So private investors can buy in at a cheaper rate. Bonus points if you can sell a bunch of federal land to insert corporation to effectively create a ‘company town’ around their little investment fiefdom.
Anyway. The actual answer is probably both.
Well, he made a ton of money with market manipulation. I don’t think he has long-term plans because he’s dying soon, and he doesn’t care about anyone other than himself.
Trump was trying to crash the stock market to create demand for bonds, thus allowing interest rates to drop because he wants to fund massive deficit spending. All he’s done is driven the world away. We reelected this clown. We’ve proven we won’t learn. We’ve proven this is what we want. We’ve destroyed our country, and China will replace us without firing a shot. We have 1,000 bases across the world and a trillion dollar military budget a year, though. Trump’s been a bully his entire life, trying to bully the world, they don’t give a shit, and they’re moving on.
It’s idiotic on so many levels. Lutnick is not a complete idiot but he’s acting like one for power, I mean being a billionaire is not enough. I wish Trump would listen to Bessent but unfortunately that’s not going to happen.
It worked for Mexico. See how they’re prospering /s
His plan is to turn United States into a Third World country for his Russian masters.
He doesn’t have a plan, and it makes no sense to look for one.
What he has is malignant narcissism, plus several competing factions in his administration competing with each other for his attention. Some of them want a weaker dollar, some of them want to consolidate power, some just want to grift. Trump doesn’t care about any of them, he just loves the attention. Being fought over like a prize inflates his ego and brings him joy.
The result – intentionally so – is chaos and unpredictability. Everyone must come to him. That’s all he cares about. Strong dollar, weak dollar, it doesn’t matter. As long as people are coming to him begging, he’s happy. If he gets happy enough, he’ll give them what they want, for a while. But that can’t last, because he desperately wants them to come begging again. So there is chaos.
There is no strategy, there is only the feeding of a deep psychological disorder. It’s very literally politics by the whim of a madman.
Im not saying it is actually his plan or if its a good plan, but a depreciated currency does bring several advantages, which is why China has (likely) been manipulating their currency to do this for about 25 years.
It makes your exports cheaper, encourages tourism
Every economic choice brings benefits and costs
The Turkish lira, as you probably know, has been on freefall on/off on exchange markets for over a decade. You can depreciate your currency less agressively
People continually do this thing with Trump where they try to unwrap a master plan. It is sinply: trump decides tariffs are cool and then his yes-men manufacture to him and the public why they are good. There is no “policy,” as one would normally understand it.
If you actually wanted to depreciate your currency, tariffs would be one of the stupidest ways to do it, as they will likely have an equal opposite effect, with many additional costs
Tariffs usually appreciate currencies, the dollar’s devaluation is somewhat unique to the mixture of things happening, including people losing faith in the dollar
Yay. MAGA’s grandparents made a safe world for prosperity and they undid it in less than 80 days for the LOLs
MAGA has no honor
Why do you think there is one?
What if he’s actually just full of shit and everything else is just vapor?
as I discussed here, Trump has long sought a weak dollar:
> if Trump seeks to have a weaker dollar, as he has stated, while retaining high tariffs that appreciate the dollar, the Federal Reserve must decrease interest rates to depreciate the dollar given the absence of capital controls; effectively, this is a representation of the impossible trinity, in which an independent monetary policy is forgone. if there is maximum employment, that is inflationary
I incorrectly stated that his tariffs would appreciate the dollar, when the opposite occurred. while some, such as Stephen Miran, the chair of the White House Council of Economic Advisers, have argued that devaluing the dollar is beneficial to reverse the “exorbitant burden” of the dollar’s apparent overvaluation as a reserve currency — a statement that lacks basis — the realistic answer is that confidence in the U.S. economy has fallen; the dollar’s strength is attributable to economic productivity based on bond-yield differentials, and, bolstered by rearmament, Europe’s economic prospects have dramatically increased
When unethical looters take over a government they devalue their own currency right after investing in other currencies. Trump is no different.
He cares only about how much people will remember him and talk about him after he dies. That is what this is all about.
Plllllaaaaaaaaaaannnn? What is this… Plllaaaaaaaannnn you speak of?
r/AskaConservative – they’ll know more about Trump’s motives.
But he’s trying to knock China out. But doing so will cause issues for the U.S. – not as many as for the Chinese, but Xi will care more about winning the fight than worrying about temporary suffering. Trump doesn’t trust Xi, and China has been buying up U.S. companies and stealing data and technology. There was the balloon incident earlier. Etc. They export more goods to the US -including prescriptions and computers. They mine a great deal of data through ChatGPT and TikTok and have recently sent a veiled threat about hacking. The theory is that the Wuhon virus also came from them – at any rate, they somehow couldn’t provide PPE they’d promised. And now they’re threatening hacking and cutting off rare earth minerals – they could also dump their US debt – or they could invade Taiwan. All or pick a few.
Untangling them from the US isn’t a bad idea, and we don’t export as many goods as vice versa. There’s something like a trillion or 400 billion dollar trade deficit, and they had massive tariffs on US goods already, which Trump matched half of, and Xi just kept moving China’s tariff higher. Yesterday, they ended in a standoff at 150%, with neither budging. I think it surprised Trump. But at least no one is making deals with China in the meantime (Australia turned them down). Until Trump can announce a major deal with other players, and possibly replace some of what China can do, the market is going to be in the air or reactionary.
Incidentally, this is a good time for Canada to think about mining some of the 14 million tons of rare earth minerals they’ve been keeping sacrosanct – but it would be a leveraging tool.
How many casinos did he bankrupt?
Devalue the US dollar and switch to a crypto economy?