(CNBC) The declining dollar faces more headwinds after posting worst first-half return in 52 years

[pedex]

If it keeps going down, the dollar will be as low as it was under Obama!

Rough.

Our banking system has not recovered nor returned to non emergency conditions since 2008. The bad decisions made then will make subsequent crashes far worse.

 

[Ikari]

This is just Trump wrecking the economy. We all knew this would happen.

 

[Absentglare]

(CNBC) The declining dollar faces more headwinds after posting worst first-half return in 52 years
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The U.S. Dollar has suffered an 11% fall since the beginning of the year. It's the worst drop since Richard Nixon broke the Bretton Woods Accord.

Among other reasons for the drop, the article cites tariffs, rising debt, and global investors seeking other "safe havens".

It seems we're seeing an exodus from U.S. monetary instruments.

I would also offer a falling dollar, accompanied by rising treasury rates, is indicative of a loss in U.S. "faith & credit".

The world lacks faith in the American Mafia.

It may fall slowly, and then, one day, quickly.

 

[Kushinator]

If Republicans and Democrats ever wonder why the two major parties are losing support, all they have to do is look at the way both of them refuse to tax the rich nor balance the budget.

Balancing the budget is simply a thing of fiction at this stage. I will continue to repeat this so that it can soak in: all that matters is the economy grows faster than debt in the long run.

 

[Chomsky]

The worst part is the huge opportunity cost. 1 trillion a year buys a lot of stuff, but instead it goes to interest. Not principal, just interest.

I'm well aware, but appreciate your bringing it to our attention!

Yes. You are very right, in this.

 

[Chomsky]

The bad news is that the $ is just reaching pre-covid levels. It was lower than this during Trumps first term, and that was without all the financial instability and broken international relations he is now creating. Add to that the BBB and it's awful impact on future debt!! Chances are that we haven't seen the bottom for the US$ yet,

I'm with you in the bolded.

and with our highly unstable leadership we could still see some serious further drops. What is really sad is that this should be great news for our exporters and hence job creation, but Trump has done so much damage to our export markets with his tariff war and insane threats/insults etc that few exporters are going to benefit.

Yes, the bitter irony.

 

[Kushinator]

I'm with you in the bolded.

A weaker dollar is good for exports. However, a reduction of imports will necessarily reduce consumption. We tend to import things difficult to source.

The knuckle-dragger cult is conditioned to believe imports reduce GDP.

And that's just one of the reasons why we make fun of them.

 

[ALiberalModerate]

If it keeps going down, the dollar will be as low as it was under Obama!

Rough.

You are comparing today to the worst global financial crisis since the Great Depression? You really are slipping and no mention of Biden in this post either… You have to try harder with the disingenuous.

 

[Peacenik]

Balancing the budget is simply a thing of fiction at this stage. I will continue to repeat this so that it can soak in: all that matters is the economy grows faster than debt in the long run.

I certainly agree with part of that. It is true if the economy grows faster than the the debt we are fine, but the problem is that has not happened in so long the Debt/ GDP ratio is too high, which puts us on shaky ground and drives away US debt holders. That causes our credit rating to drop.

In order to turn that around, the deficit has to be reduced drastically so our debt increases at a slower pace than our economy. Balancing the budget would be the best thing we could do right now to send the message to the world that we know how to take care of our fiscal house. This would restore trust in the USA and allow us to rebuild our solid reputation as the world's most secure investment, something we are rapidly losing right now.

 

[Lord Tammerlain]

The bad news is that the $ is just reaching pre-covid levels. It was lower than this during Trumps first term, and that was without all the financial instability and broken international relations he is now creating. Add to that the BBB and its awful impact on future debt!! Chances are that we haven't seen the bottom for the US$ yet, and with our highly unstable leadership we could still see some serious further drops. What is really sad is that this should be great news for our exporters and hence job creation, but Trump has done so much damage to our export markets with his tariff war and insane threats/insults etc that few exporters are going to benefit.

Trump wants a lower usd

 

[ncguy]

Trump wants a lower usd

exactly. more incentive to import less and export more, helping "solve" the balance of payments "problem" by making americans have less.

 

[Lord Tammerlain]

exactly. more incentive to import less and export more, helping "solve" the balance of payments "problem" by making americans have less.

A short term solution that never works in the long term. Every country that does this continues to lower their currency and hurt the well being of the country


What is needed is to improve productivity

 

[Lord Tammerlain]

I certainly agree with part of that. It is true if the economy grows faster than the the debt we are fine, but the problem is that has not happened in so long the Debt/ GDP ratio is too high, which puts us on shaky ground and drives away US debt holders. That causes our credit rating to drop.

In order to turn that around, the deficit has to be reduced drastically so our debt increases at a slower pace than our economy. Balancing the budget would be the best thing we could do right now to send the message to the world that we know how to take care of our fiscal house. This would restore trust in the USA and allow us to rebuild our solid reputation as the world's most secure investment, something we are rapidly losing right now.

Balancing the budget will cause a recession a significant one if done in the short term. Either way painful decisions would need to be made

 

[Integrityrespec]

(CNBC) The declining dollar faces more headwinds after posting worst first-half return in 52 years
--

--
View attachment 67578654
--
The U.S. Dollar has suffered an 11% fall since the beginning of the year. It's the worst drop since Richard Nixon broke the Bretton Woods Accord.

Among other reasons for the drop, the article cites tariffs, rising debt, and global investors seeking other "safe havens".

It seems we're seeing an exodus from U.S. monetary instruments.

I would also offer a falling dollar, accompanied by rising treasury rates, is indicative of a loss in U.S. "faith & credit".

Why does the left seem so happy when it posts this kind of thing? It's a shame that many on the far left seem so happy when America is in trouble, or allegedly so. Then when it turns out to be false, no correction, no apology, just create another rumor to try to scare Americans and defame Trump. Try changing your terrible policies and choose better candidates.
Start with protecting women in women's sports, and then admitting the border is far safer and Americans feel far safer under Trumps Border policies. OBBB got passed and I suspect it will pay off in the next 2 years and all the doom and gloom claims some on the left are shouting will be just more nay-sayers who hate Trump and don't really like America and move on to another false claim. The next big deal is Ukraine/Russia and I look for movement there as well. Of course nobody on the left will like it.

 

[Kushinator]

Balancing the budget would be the best thing we could do right now to send the message to the world that we know how to take care of our fiscal house. This would restore trust in the USA and allow us to rebuild our solid reputation as the world's most secure investment, something we are rapidly losing right now.

Never going to happen. Attempting to balance the budget would cause a $2 trillion+ reduction in GDP, which would trigger a global depression. It would be so devastating that the reduction of income would trigger federal revenue to freefall. Essentially a race to the bottom.

NEVER going to happen.

 

[Kushinator]

Why does the left seem so happy when it posts this kind of thing? It's a shame that many on the far left seem so happy when America is in trouble, or allegedly so. Then when it turns out to be false, no correction, no apology, just create another rumor to try to scare Americans and defame Trump

Show me when this has ever been true. It's more of a projection on your part:

Remember this shit post?

Perception is reality. The average American doesn't see the booming economy that the Biden team keeps touting. Instead they see, high grocery prices, high fuel prices, home prices and mortgage rates so high they can't afford to purchase a home. Rent rates are up and growing, child care is up, school supplies are more expensive this year than last. So keep parroting the liberal line that this economy is great. Well, the reality is the voters don't agree. It's not great unless you are one of those making hundreds of thousands of dollars and have a nice investment portfolio. If you have retirement investments you may have already had to dip into them to make ends meet. So please stop telling Americans they are stupid and just don't understand how great the Biden economy really is.

You don't care about the strength of the economy.

Start with protecting women in women's sports, and then admitting the border is far safer and Americans feel far safer under Trumps Border policies.

What in the actual ****

OBBB got passed and I suspect it will pay off in the next 2 years and all the doom and gloom claims some on the left are shouting will be just more nay-sayers who hate Trump and don't really like America and move on to another false claim.

It's going to necessarily increase the deficit.

You have no idea about what you speak.

 

[Peacenik]

Balancing the budget will cause a recession a significant one if done in the short term. Either way painful decisions would need to be made

How so?

We only need to tax the rich to do it. It won't affect 99% of US consumers.

 

[Peacenik]

Never going to happen. Attempting to balance the budget would cause a $2 trillion+ reduction in GDP, which would trigger a global depression. It would be so devastating that the reduction of income would trigger federal revenue to freefall. Essentially a race to the bottom.

NEVER going to happen.

Clinton did it. It caused no such thing.

Tax the rich to do it.

Please explain why this would lead to the effects you describe.

 

[Peacenik]

All of this nonsense suggesting taxing the rich would cause a recession sure looks like either the rich are posting out of greed; or for some strange reason the non-rich are defending the rich, which is absurd.

The rich need no defense. They have all the power.

Republicans have shown we can not possibly cut enough of government to balance the budget. This means we have to tax the rich to do it. No other way to do it.

I am not buying the following:

'If we tax the rich enough to pay for the country everything will be doom and gloom!'

 

[Kushinator]

How so?

We only need to tax the rich to do it. It won't affect 99% of US consumers.

You can't increase revenue by 6% of GDP by increasing taxes on the most wealthy.

 

[Kushinator]

Clinton did it. It caused no such thing.

He did no such thing

Tax the rich to do it.

That's not what happened in the 1990s.

Please explain why this would lead to the effects you describe.

What is a deficit? It is necessarily an injection of money into the economy. Remove that deficit, and there will be consequences.

 

[Kushinator]

All of this nonsense suggesting taxing the rich would cause a recession

Explain your tax the rich plan.

'If we tax the rich enough to pay for the country everything will be doom and gloom!'

You're not being realistic. Deficit reduction will require both spending cuts and revenue growth. It's not a one-way street.

 

[Airyaman]

Trump wants a lower usd

Why US President Trump welcomes a weaker dollar – DW – 04/30/2025

A strong US dollar hampers Trump's manufacturing revival by making exports expensive and widening the US trade deficit. A plan known as the "Mar-A-Lago Accord" suggests convincing major economies, with threats and deals, to help it devalue the dollar and keep Trump's plans for a manufacturing...

www.dw.com

Why Donald Trump’s plan to weaken the dollar is flawed | Kenneth Rogoff

There are many reasons why the US runs persistent trade deficits – a strong dollar is but one of them

www.theguardian.com

 

[Lord Tammerlain]

Yes and no

Clinton did have a budget surplus, but off budget items still caused the deficit to increase in 1999 ( I believe that was the year)

He did no such thing

 

[Kushinator]

Yes and no

Clinton did have a budget surplus, but off budget items still caused the deficit to increase in 1999 ( I believe that was the year)

He didn't tax the rich to eliminate the deficit.