As Trump Sinks Dollar, Once Unthinkable Worry Grips Markets

[Variant]

One of the other benefits of weakening currency is that the place in question becomes a more attractive tourist destination...

 

[Metric Mouse]

So what? US exports last year 3 trillion 11% of GDP.

Think we wont miss it if it tanks?

Sure.

But my point stands... we would miss it considerably less than any other country on the planet.

 

[Metric Mouse]

To think that righties allegedly voted for tRump because of the econo-me. Allegedly.

It sucks, but we can see how the strength of the dollar has changed since he was elected...

 

[Variant]

Sure.

But my point stands... we would miss it considerably less than any other country on the planet.

You'll see eventually I suppose. If you can bring yourself to look.

 

[Metric Mouse]

You'll see eventually I suppose. If you can bring yourself to look.

I've already looked. My data is supported...

It's not like the US needs trade as much as countries like Germany or Canada.

 

[Phys251]

I've already looked. My data is supported...

It's not like the US needs trade as much as countries like Germany or Canada.

Want a depression? Cut off trade with everyone. That'll learn 'em good!

 

[Yakshi]

The USA actually derives less of their GDP from imports and exports than North Korea (or any other country on the planet) does.

Why do these Trump supporters post the strangest lies?

 

[Yakshi]

I've already looked.

No, you haven't.

My data is supported...

You have no data, as usual.

 

[Metric Mouse]

Want a depression? Cut off trade with everyone. That'll learn 'em good!

If all trade were suspended across the globe, the United States would be the least effected.

Imagine the depression in countries that need trade multiple times more than the United States does?

 

[Metric Mouse]

Why do these Trump supporters post the strangest lies?

You are such a Trump supporter, you don't even know trade to GDP ratios...

Did Elon pay you for your post?

World Bank Open Data

Free and open access to global development data

data.worldbank.org

 

[YourWakeUpCall]

Save the drama fo' yo mama. Geebus. Economics > you.

 

[The Mark]

I am fairly sure people have been thinking about the dollar declining in value for literally decades, so unless by "unthinkable" they mean "highly unlikely"...

 

[Yakshi]

Want a depression? Cut off trade with everyone. That'll learn 'em good!

Don't press him too hard. He'll start providing links that show that he's lying, meanwhile pretending that the links support his point.

It's always the same routine. Lie repeatedly, argue lazily, toss up links at random.

 

[yankintx]

Hey, good job all you MAGAs who are financial experts. You're really showing the country what a golden age REALLY looks like.



"The US dollar is not rallying as a safe haven during market selloffs, instead sinking against other currencies, which is unusual and telling."

https://www.bloomberg.com/news/articles/2025-03-28/trump-is-rattling-the-market-s-faith-that-the-dollar-is-a-haven?embedded-checkout=true

But....Hunters lap top...but...Hillarys emails...but...woke

Americans are low information voters, they take the prize.

 

[Crakhobarbie]

A couple of weeks back I started a thread called "What happens to the US$." Basically predicting that the US$ would start to lose values based on Trumps policies. I had noticed that the $ was decoupling from global risk and not being looked at as a safe haven currency like it used to be. It was obvious to even a small part time trader like myself. Once that safe haven coupling starts to break, the rest of the reactions to Trumps policies were always going to put pressure on the $.

The trouble for America now is that we are still massively dependent on imports, and will continue to be so for many years even if Trumps attempt to bring back manufacturing achieves anything. The lower $ will of course stroke inflation because of the imports, and hence lower American living standards. In countries with strong export markets, the compensation for a lower currency is improved competitiveness in the global markets, and therefore higher export sales. This supports jobs and brings extra income into the country. The trouble we face now however is that Trump is busy destroying our export markets through his approach to international relations. Instead of say our Soy Bean farmers getting an extra share of the global market via lower prices, that market has been trashed by Trumps policies, retaliatory tariffs etc. and our growers won't benefit at all. All that happens is the cost of anything we import will rise, even before adding the new tariffs.

The latest part of this story is that there is now talk that Trump and co are deliberately trying to reduce the value of the US$. That is the reaction of a typical export orientated economy. The opposite to what the US is, and what the US will probably never be again until our economy is completely trashed and living standards massively reduced. Not a goal I think many Americans share outside the Billionaire class for who it might provide huge opportunities. I get the feeling that Trump feels he can turn the US into a massive global manufacturing hub like we were post WW2. That would make reducing the US$ an important step. The reality though is that American living standards will never allow global competitiveness in any labour intensive manufacturing today where we don't have some natural advantages. All we get instead is higher local prices for inefficiently (in cost) made US manufactured goods protected by tariffs. You aren't going to sell those into global markets when competing with lower cost countries. So all the lower US$ does is harm Americans.

As with many parts of Trumps policies, I think I can maybe understand, and even sometimes agree with, his end vision, but think the way he is trying to achieve it is insane. In this case though, I also think his end vision is fatally flawed. Based on historic memories of a time that we can't get back because we live in a very different world today. Back around Christmas time I took a substantial 'bet' (investment) that the US$ would drop over Trumps term. I wrote on here about that at the time. It seems that so far my thinking was sound, but we are still a long way from where I expect things to go.

Black market good, here we come!