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Why is the US dollar falling by record levels in 2025?
Sell-off linked to unpredictable and unfunded economic policies which threaten the safe-haven role of the US dollar.
We're still one short of a lib cope squad quorum, but we have two shining fucktarded examples of how they know zilch about the reasons for a "strong" vs. "weak" dollar.
Someone's mothers drank some real rotgut during pregnancy.
I have nothing of use to contribute to this discussion (just my load across your face). It's a data point that doesn't fluctuate much over long periods of time.
Just got back from mongering in Vegas.....the dollar is still holding there.
Potential advantages for a government to intentionally weaken the dollar
A government might consider intentionally weakening its currency, like the US dollar, to achieve several economic objectives, mainly related to boosting exports and domestic economic activity.
Here's a breakdown of the potential advantages:
Boosting Exports: A weaker dollar makes US goods and services relatively cheaper for foreign buyers. This can increase demand for American-made products, leading to a rise in exports and potentially creating jobs in exporting industries like manufacturing and agriculture. According to Dunham & Associates Investment Counsel, Inc., a weaker dollar makes US goods "go on sale" globally.
Reducing Trade Deficits: With increased exports and potentially decreased imports (as foreign goods become more expensive for US consumers), a weaker dollar can help narrow a country's trade deficit. This can contribute to a healthier balance of payments.
Enhancing Foreign Earnings for Multinational Corporations: US companies with significant overseas operations can see their foreign earnings increase when converted back into a weaker dollar, potentially boosting their financial performance and stock prices.
Encouraging Domestic Tourism: As foreign travel becomes more expensive for US citizens due to a weaker dollar, domestic tourism might see a boost. This can stimulate local economies and support tourism-related businesses within the US.
Increasing the Cost of Imports, Encouraging Domestic Alternatives: A weaker dollar makes imported goods more expensive for US consumers and businesses. This might encourage consumers and companies to choose domestically produced alternatives, potentially supporting local industries and job growth. MarketWatch notes that a weaker dollar historically contributes to higher import price inflation.
Important Considerations:
While a weaker dollar can offer certain benefits, it's essential to acknowledge potential downsides:
Inflation: Increased import costs due to a weaker dollar can contribute to inflation, making everyday goods more expensive for consumers.
Reduced Purchasing Power: Americans' purchasing power abroad diminishes, making foreign travel and imported goods pricier.
Market Uncertainty and Investor Confidence: A prolonged period of dollar weakness could potentially signal economic instability, raising concerns among investors.
It's important to remember that currency devaluation is a complex economic policy with potentially significant consequences, and governments would likely weigh the potential benefits against the risks before taking such action.
^ This sort of explains the Trump administrations reasoning for weakening our currency , the last few paragraphs details some of the reasons why we should be very cautious about this approach.
I am not an economist but I think this policy is not wise.
Very good summary Twentyfive. I agree but am wondering if trumps calls for lowering rates will crater the dollar if his wishes were to come to fruition. An independent fed has its merits in our current situation to keep
This in check. Real estate guys always want rates lowered. Since Powell will be around for another year, we’re good for now.
Stagflation is here for much of the economy, but there’s the argument that AI is starting to increase productivity and will keep inflation in check. My only concern is the government is trying to inflate itself our
of its debt, causing more and more of the burden to fall on the middle and lower
Class citizens. Those of us who’ve built wealth will be fine, but petty crimes and blight may become more prevalent when you have a widening
Gap of the haves and have
Nots. Many people will have to choose between paying for health insurance or
Go without starting next year.
Comments
last commentThis meeting of the lib cope squad is being called to order!
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We need a huge reset.
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^ I blew off work to do yardwork, swim in the pool and grille steaks later. We don't need no stinkin' reset.
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Click bait by the Squat Crew Groupies. You're going to need therapy as Colbert is ending in 10 months. Cant wait.
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google.com
Why is the US dollar falling by record levels in 2025?
Sell-off linked to unpredictable and unfunded economic policies which threaten the safe-haven role of the US dollar.
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China intentionally keeps the exchange value of it's currency low, to maintain a trade surplus.
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We're still one short of a lib cope squad quorum, but we have two shining fucktarded examples of how they know zilch about the reasons for a "strong" vs. "weak" dollar.
Someone's mothers drank some real rotgut during pregnancy.
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@Puddy
"DDDDDaaaaaaaahhhhhhhh......"
"Thanks puddy, now go get cleaned up."
There's your quorum.
I have nothing of use to contribute to this discussion (just my load across your face). It's a data point that doesn't fluctuate much over long periods of time.
Just got back from mongering in Vegas.....the dollar is still holding there.
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Potential advantages for a government to intentionally weaken the dollar
A government might consider intentionally weakening its currency, like the US dollar, to achieve several economic objectives, mainly related to boosting exports and domestic economic activity.
Here's a breakdown of the potential advantages:
Important Considerations:
While a weaker dollar can offer certain benefits, it's essential to acknowledge potential downsides:
Inflation: Increased import costs due to a weaker dollar can contribute to inflation, making everyday goods more expensive for consumers.
Reduced Purchasing Power: Americans' purchasing power abroad diminishes, making foreign travel and imported goods pricier.
Market Uncertainty and Investor Confidence: A prolonged period of dollar weakness could potentially signal economic instability, raising concerns among investors.
It's important to remember that currency devaluation is a complex economic policy with potentially significant consequences, and governments would likely weigh the potential benefits against the risks before taking such action.
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^ This sort of explains the Trump administrations reasoning for weakening our currency , the last few paragraphs details some of the reasons why we should be very cautious about this approach.
I am not an economist but I think this policy is not wise.
Log in to vote
LIB COPE SQUAD IN THE HIZZZOUSE!!!
"I have nothing of use to contribute to this discussion (just my load across your face)."
Think you're on the wrong site for your "leanings."
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The over reaction to Covid and all the money printed caused this.
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Thanks @twentyfive for adding some objectivity to this thread.
Both "strong" and "weak" currencies have benefits and drawbacks.
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Covid goes back to when Joe Biden farted on a bat when he was 17.
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Youre out of touch if you cant tell how the dollars buying power keeps falling
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Very good summary Twentyfive. I agree but am wondering if trumps calls for lowering rates will crater the dollar if his wishes were to come to fruition. An independent fed has its merits in our current situation to keep
This in check. Real estate guys always want rates lowered. Since Powell will be around for another year, we’re good for now.
Stagflation is here for much of the economy, but there’s the argument that AI is starting to increase productivity and will keep inflation in check. My only concern is the government is trying to inflate itself our
of its debt, causing more and more of the burden to fall on the middle and lower
Class citizens. Those of us who’ve built wealth will be fine, but petty crimes and blight may become more prevalent when you have a widening
Gap of the haves and have
Nots. Many people will have to choose between paying for health insurance or
Go without starting next year.
Log in to vote