3 ms·

Trump Says He's Not Concerned with Decline of US Dollar

36 points by thomassmith65 9mo ago

SilverElfin 9mo ago
I’ve been hearing this type of talk from dedicated pro Trump friends. I don’t quite understand their logic, but it is something like having the Dollar crash so the federal reserve goes away. But I don’t get what the goal is. If the Dollar crashes, America would permanently lose its unique position with being the controller of the global reserve currency. And the American citizens who hold US Dollars will be a lot poorer. I’m not even sure the recent shifts in USD have actually reflected the true risks of the national debt, so it could fall a lot more than where it is presently. Is there actually some strategy here? Or is it just that Trump doesn’t care because his family is getting so much richer that changes in the Dollar’s value don’t matter to them?
- Avshalom 9mo ago
  Trump doesn't care because he has no fucking idea how anything works (cf tariffs).
- vdupras 9mo ago
  Whatever Trump's strategy is, it's not for the benefit of the US, but of some group, the same one who got all the insider trading hints on this roller coaster. But today's USD decline? Brutal. It almost makes me want to say, "it's happening!".
  - toomuchtodo 9mo ago
    > But today's USD decline? Brutal. It almost makes me want to say, "it's happening!". I agree we're close, but we're not quite there yet. The bond market is punishing sovereign debt (Japan bond crisis), and there is evidence that billions of dollars of capital is willing to leave US treasuries to find something better. Gold and silver are up wildly; some may say overbought, but I think that only applies in the before times. This will, imho, continue as capital seeks venues of prudent economic management (which, arguably, the US, USD, and UST are no longer). The dollar lost 8% of its value last year, I expect that pace to continue, if not worsen. https://economics.td.com/us-the-united-states-dollar-in-2025 https://economics.td.com/us-the-united-states-dollar-in-2025 (not investing advice, i am a rando)
    - thomassmith65 9mo ago
      Bessent claims it's all down to Japanese bonds, but that it be that alone isn't credible. This administration has half a dozen major crises going on this week.
      - toomuchtodo 9mo ago
        Bessent is a liar, full stop. https://www.google.com/search?q=bessent+liar https://www.google.com/search?q=bessent+liar
    - deleted 9mo ago
      [deleted]
  - thomassmith65 9mo ago
    I fully believe many of Trump's tariff announcements were for the benefit of insiders. I don't know about this dollar plunge being intentional, though. This one feels more like a massive screw up caused by the administration convincing each other that Europe and the 'middle powers' are completely powerless.
- amrikiio 9mo ago
  They may claim they are not concerned. But are they genuinely not concerned? They have a huge advantage to lie, or else it would become a self-fulfilling prophecy. People tend to lie.
- thomassmith65 9mo ago
  I'm unfavorably inclined toward Trump and interpret it as "actually, I meant to do that" The charitable version is based on the fact that if your dollar falls then the things you export to other nations suddenly become cheaper for them. It's like natural tariffs: imports to the USA become unaffordable; exports from the USA become a bargain to other nations.
  - deleted 9mo ago
    [deleted]
  - JohnFen 9mo ago
    That "charitable version" is the same explanation Trump has been giving from through his first term as well. He's long been in favor of a weak dollar.
    - thomassmith65 9mo ago
      Honest thanks for the context. That probably is his true preference. That said, he has also advocated the opposite. Here he is in 2018: “The dollar is going to get stronger and stronger, and ultimately I want to see a strong dollar,” Trump said in an exclusive interview from the World Economic Forum in Davos, Switzerland. http://cnbc.com/id/104968240 http://cnbc.com/id/104968240
      - JohnFen 9mo ago
        I missed that! Thanks
- cosmicgadget 9mo ago
  The best explanation I have heard is that a weak dollar means the US exports more and when you're a super smart business man you try to sell more stuff.
taylodl 9mo ago
Trump also says he wants the Fed to lower interest rates. Someone needs to explain to Trump that he therefore actually cares about the decline of the US dollar.
- toomuchtodo 9mo ago
  Bond market controls interest rates, not the Fed. Can't fool or pressure the bond market. The bond market keeps the score - https://www.axios.com/2026/01/22/trump-tariffs-bond-market-fed https://www.axios.com/2026/01/22/trump-tariffs-bond-market-f... | https://archive.today/FIvDs https://archive.today/FIvDs - January 22nd, 2026 https://www.weforum.org/podcasts/meet-the-leader/episodes/davos-2026-jamie-dimon-jpmorgan-chase/ https://www.weforum.org/podcasts/meet-the-leader/episodes/da... ("The Fed doesn't really set interest rates," JPMorgan Chase CEO Jamie Dimon said in Davos.) (“I used to think that if there was reincarnation, I wanted to come back as the President or the Pope or as a 400 basball hitter. But now I would like to come back as the bond market. You can intimidate everybody.” — James Carville; global bond market is ~$145 trillion)

36 points by thomassmith65 9mo ago

I’ve been hearing this type of talk from dedicated pro Trump friends. I don’t quite understand their logic, but it is something like having the Dollar crash so the federal reserve goes away. But I don’t get what the goal is. If the Dollar crashes, America would permanently lose its unique position with being the controller of the global reserve currency. And the American citizens who hold US Dollars will be a lot poorer. I’m not even sure the recent shifts in USD have actually reflected the true risks of the national debt, so it could fall a lot more than where it is presently. Is there actually some strategy here? Or is it just that Trump doesn’t care because his family is getting so much richer that changes in the Dollar’s value don’t matter to them?

Avshalom 9mo ago
Trump doesn't care because he has no fucking idea how anything works (cf tariffs).
vdupras 9mo ago
Whatever Trump's strategy is, it's not for the benefit of the US, but of some group, the same one who got all the insider trading hints on this roller coaster. But today's USD decline? Brutal. It almost makes me want to say, "it's happening!".
- toomuchtodo 9mo ago
  > But today's USD decline? Brutal. It almost makes me want to say, "it's happening!". I agree we're close, but we're not quite there yet. The bond market is punishing sovereign debt (Japan bond crisis), and there is evidence that billions of dollars of capital is willing to leave US treasuries to find something better. Gold and silver are up wildly; some may say overbought, but I think that only applies in the before times. This will, imho, continue as capital seeks venues of prudent economic management (which, arguably, the US, USD, and UST are no longer). The dollar lost 8% of its value last year, I expect that pace to continue, if not worsen. https://economics.td.com/us-the-united-states-dollar-in-2025 https://economics.td.com/us-the-united-states-dollar-in-2025 (not investing advice, i am a rando)
  - thomassmith65 9mo ago
    Bessent claims it's all down to Japanese bonds, but that it be that alone isn't credible. This administration has half a dozen major crises going on this week.
    - toomuchtodo 9mo ago
      Bessent is a liar, full stop. https://www.google.com/search?q=bessent+liar https://www.google.com/search?q=bessent+liar
  - deleted 9mo ago
    [deleted]
- thomassmith65 9mo ago
  I fully believe many of Trump's tariff announcements were for the benefit of insiders. I don't know about this dollar plunge being intentional, though. This one feels more like a massive screw up caused by the administration convincing each other that Europe and the 'middle powers' are completely powerless.
amrikiio 9mo ago
They may claim they are not concerned. But are they genuinely not concerned? They have a huge advantage to lie, or else it would become a self-fulfilling prophecy. People tend to lie.
thomassmith65 9mo ago
I'm unfavorably inclined toward Trump and interpret it as "actually, I meant to do that" The charitable version is based on the fact that if your dollar falls then the things you export to other nations suddenly become cheaper for them. It's like natural tariffs: imports to the USA become unaffordable; exports from the USA become a bargain to other nations.
- deleted 9mo ago
  [deleted]
- JohnFen 9mo ago
  That "charitable version" is the same explanation Trump has been giving from through his first term as well. He's long been in favor of a weak dollar.
  - thomassmith65 9mo ago
    Honest thanks for the context. That probably is his true preference. That said, he has also advocated the opposite. Here he is in 2018: “The dollar is going to get stronger and stronger, and ultimately I want to see a strong dollar,” Trump said in an exclusive interview from the World Economic Forum in Davos, Switzerland. http://cnbc.com/id/104968240 http://cnbc.com/id/104968240
    - JohnFen 9mo ago
      I missed that! Thanks
cosmicgadget 9mo ago
The best explanation I have heard is that a weak dollar means the US exports more and when you're a super smart business man you try to sell more stuff.

taylodl 9mo ago

Trump also says he wants the Fed to lower interest rates. Someone needs to explain to Trump that he therefore actually cares about the decline of the US dollar.

toomuchtodo 9mo ago
Bond market controls interest rates, not the Fed. Can't fool or pressure the bond market. The bond market keeps the score - https://www.axios.com/2026/01/22/trump-tariffs-bond-market-fed https://www.axios.com/2026/01/22/trump-tariffs-bond-market-f... | https://archive.today/FIvDs https://archive.today/FIvDs - January 22nd, 2026 https://www.weforum.org/podcasts/meet-the-leader/episodes/davos-2026-jamie-dimon-jpmorgan-chase/ https://www.weforum.org/podcasts/meet-the-leader/episodes/da... ("The Fed doesn't really set interest rates," JPMorgan Chase CEO Jamie Dimon said in Davos.) (“I used to think that if there was reincarnation, I wanted to come back as the President or the Pope or as a 400 basball hitter. But now I would like to come back as the bond market. You can intimidate everybody.” — James Carville; global bond market is ~$145 trillion)