3 ms·
This is just nonsense. All central banks "manipulate" their currencies. The FED did that by printing trillions in QE. The FED did that in 1973 when they went of
by NTDF9 7y ago
This is just nonsense. All central banks "manipulate" their currencies. The FED did that by printing trillions in QE. The FED did that in 1973 when they went off the gold standard. The FED did that in 1935 when they changed the value of the dollar.
Funnily enough, the only way other major currencies can stop depreciation is by having more dollars. The way to do that would be more exports. But trade-warrer-in-chief just slapped 10% tariff on Chinese exports. If their exports go down, their currency will go down.
So, in effect, Trump caused the Yuan to devalue? So Trump is the manipulator, not China?
- thephyber 7y ago> So Trump is the manipulator, not China? "currency manipulator" is a legal designation, not just an insult. It has 3 requirements (someone linked to the Wiki in another thread). I'm pretty sure Trump wants to weaken the USD to increase US manufacturing and make our exports more competitive with the world, but I don't see that he has a plan to do it. He seems to be grabbing for any kind of leverage he can get to bully other economies into making promises to increase their imports of US exports. It's just giving false hope to US industries which no longer have a competitive advantage in the world market... long enough to last through the next presidential election.
- NTDF9 7y ago> It's just giving false hope to US industries which no longer have a competitive advantage in the world market... long enough to last through the next presidential election. I can see that. He doesn't care what really happens in the world as long as he can win the election.