https://www.independent.co.uk/news/world/americas/us-politics/trump-dollar-devaluation-robert-lighthizer-b2529784.html
Top advisers said to be ‘actively debating’ move in order to bolster US exports
I want to play devils advocate but its hard to take an objective look at anything he and his ilk have done that doesn't feed back as a benefit to Russia.
what you have to do is figure out which one they all hate the most, and then offer the rest of them a cookie to throw Marjorie under the bus as a traitor
How would making the dollar weak "make America great again"? That's stupid. The dollar being the worldwide currency is part of what makes America so strong.
The effects of economic policy usually take between 2 and ten years more often than not 4 plus years..... You know the term of a president. They do this as often as possible, they'll fuck the economy with dumb shit their base loves not ultimately ruins the economy only to blame it on the next president.
Its exceedingly transparent but people are apparently ever more exceedingly stupid or myopic.
I feel like the Republicans have really figured this out. They get elected and push through the most draconian laws where you can't see the effects immediately. While doing this, they fuck up society by making racist comments, pushing through shit judges.
By the time the election rolls around, enough people will vote Democrat and then the shit starts to stink. People incorrectly assume it's because a Democrat is in office and then elect the next Republican, starting the cycle all over again.
Someone else posted my same reply in response to another comment:
This is absolutely true, and something politicians never address because it's such a good weapon. The sad part is people fall for it every time.
Exactly. Look at all the money that was printed during the beer bug in 2020. That caused major inflation for us in 2022 and 2023.
A just until recent co-worker of mine, who is an Ultra die hard GQP moron, was just arrested for filming his 17 year old step daughter, who he’s raised since she was 8, in the shower for an untold amount of years. Fucking sick fuck! Typical Republican though…
I'm going to assume someone told them exports would go up and they stopped there because GQPers are violently allergic to nuance
Because of inflation goes up, interest rates go down, so the super rich borrow a ton of money and invest it elsewhere.
It's done from time to time. It's to lower the export value of goods. A country prints a lot more money. Say Almeria wanted to sell more cars to England.
Currently an American car is worth $30,000USD and $30,000USD can also buy 2 motorcycles from England (£24,000) .
If the world is flooded with more USD, then the person from England can still buy the American car for $30,000USD but the American can now only buy 1 English motorcycle, as the value of USD has fallen to British Pounds.
Great if you're English and buying an American car, bad if you're American and want to buy an English motorcycle.
Wouldn't it be the other way around? The American could afford more English products than the English person buying American because the higher dollar meant the other currency rate was lower?
Unless I'm misreading what you said.
No. The value of the American dollar drops. The value of the British pound stays the same. American dollars are now worth less British pounds than before. So the 10000 dollar motorcycle now costs 16000 dollars. The motorcycle still costs 10000 pounds or whatever. It’s price doesn’t change.
The other person is saying that devaluing the US dollar would make it easier for others to buy American products.
I assumed you thought they were talking about strengthening the US dollar, so I pointed out that the original post (yours, I realise now) was talking about devaluation. Not sure why you think devaluation would give greater buying power.
Devaluing currency?
Isn't that the thing the US used to accuse a bunch of other countries of doing?
Sounds like Trump, then.
Trump literally tried to do this during (what felt like) the first 6 months of his term.
Ah the "let's take a page out of China's playbook" plan. Because that really helped the working class there.
He got in on the 60s when their admission rate was way higher, plus he had an in with his brother's friend working in admissions.
Unless drumpf devalues the dollar so hard that nobody can afford .22 rounds we still have a chance.
At least they're honest about it. Republicans and Democrats will both do it, it's the only way to ever repay the debt and not get crushed by interest payments. Goodbye world reserve currency, you had a good run, you fucked it up.
The dollar has lost ~17% of its value in the past 4 years and ~95% of its value since 1924, so par for the course of the orange man wants to keep going.
If you held US stocks instead of dollars in that time, you would have returned 114,629% , beating inflation (dollar devaluation) by about 7.5% per year.
Part of the point of a deflationary fiscal policy is to increase the velocity of money and get it working for economic growth and innovation, versus being stuffed in a mattress for 100 years.
Even with a slightly deflationary currency, people still need to pay their mortgage, electricity bill, buy groceries, etc. So it's not like money won't move at all. Because something tells me that people don't want to sleep in boxes and would like to be able to eat.
They don't invest it or spend it on things like luxuries though, and that's how the health of an economy is measured.
The average person saving money for the future should have it in a Vanguard S&P 500 fund, not in cash.
$2,196, or $40,110 accounting for inflation. Today the Average American makes $59,384 or $3,251.24 in 1924. A house cost 3.6 times anual income($7,720), a house today costs 5.96-7 times anual income($354-179-417,700). The cost of food is 3202% higher in 2024 vs 1924.
Keep in mind that the in 1920s only about 1% of homes had indoor plumbing and electric. If they had an indoor bathroom, there was usually only one on the ground floor with no hot water heater. They did not have heat or air conditioning systems. They were warmed by fireplaces and cooled by opening windows. They also had single pane windows and far less insulation. There were no indoor washers and dryers nor refrigerators included. It makes perfect sense that it costs less for far fewer features.
There is a similar quality difference in the food. A lot of it was canned or preserved. Most of it was produced locally, so many foods were only reasonably available. The only strawberries you were eating in January were the ones you jellied and jarred yourself. On average 44 hours a week were spent on food preparation and cleanup. We pay extra for convenience, quality, and availability.
This is wrong. By looking at a single datapoint of total printed dollars, you're measuring USD's value relative to older USD only. This would only make sense if the value for things you would trade USD for are static. Relative to other reserve currencies, assets, goods, services, USD is significantly more valuable today than it was 4 years ago. Not to mention the proportion of printed dollars no longer circulating.
Exactly. Which is why people who want to maintain their wealth by homes and stocks and gold, etc. Because the dollar is purposely losing value. And that's a dumb thing to save in. But most people do not understand this.
What is it about this comment that the downvoters disagree with? Is it people who don't realise that fiat is inherently inflationary? I can't even come up with a guess as to what kind of mind reads this and is able to both understand it and decide it is something that needs downvoted. Please, someone explain, I feel like I've lost touch with the world people are living in.
Me too. I hold money I wish to save in other currencies such as gold and silver and Monero and let the dollar just devalue. I keep only as many dollars as I absolutely need for in-emergency around and no more.
Exactly, put your value into cash if you are in a situation where you need to do that in order to use it. Holding value as cash is like holding tobacco as smoke.
You're an absolute idiot. You think the cost of eggs went up 10bagillion dollars and they make sense to you? Fuck off. Biden want even in office when the groundwork got laid, shithead. Good luck arguing that one.
For anyone wondering what the original comment that just_another_person was embarrassed for having had made.
It's an obvious facetious statement since "bagillion" is not a real measurement of currency. Are you and your fake accounts out on patrol tonight, or just some other fucking morons?
Says the dipshit that deleted his comment lol. You're a terrible troll, you can do better.
The dollar is in a precipitous free fall right now. Just go to the grocery store. Things aren't getting more expensive because they are harder to come by it's because the money printer is working overtime.
No.
The dollar has recently been stronger against the Euro, Pound, Yuan, Ruble, and Yen.
Now compare the USD to stocks, gold, yadda.. you know, not other currencies that devalue faster.
You have to compare apples to apples. But also, gold is not a good inflation hedge on short timescales (years). It only really holds its value over a hundred years.
No.
Yes
The dollar has recently been stronger against the Euro, Pound, Yuan, Ruble, and Yen.
What does that have to do with my point? The petrodollar is (for now) the reserve currency and has a place of privilege where it can generally farm out the effects of it's overprinting and mismanagement to other countries and currencies.
The dollar is STILL in freefall though. Look at purchasing power. The prices of groceries, houses, lumber, commodities etc
I attribute this to the COVID cash giveaway where we printed 20% of all the dollars that had ever been printed in history up to that point.
It's no use. I'm embarrassed for having told people that Lemmy is a generally intelligent group. I had no idea that basic economics was beyond the hive mind here. It feels weird even calling this basic economics, this is more like basic observation. I had no idea that there were people emotionally invested in pretending like inflation is fake.