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Trump may tank the dollar (Original Post) NewJeffCT Aug 2018 OP
Dimmer than a 1-watt bulb dalton99a Aug 2018 #1
The weaker the dollar the higher inflation DemocratSinceBirth Aug 2018 #2
Yes, and other currencies around the world gain value NewJeffCT Aug 2018 #3
Exports would become more competitive but that would provide little solace. DemocratSinceBirth Aug 2018 #4
Also it's a method to accelerate debt payments. no_hypocrisy Aug 2018 #5
Russia wants a weak dollar so double win!!! sfwriter Aug 2018 #6

dalton99a

(81,570 posts)
1. Dimmer than a 1-watt bulb
Sat Aug 11, 2018, 09:31 AM
Aug 2018

"“a stunning level of superficial knowledge and plain ignorance"

"Donald Trump was the dumbest goddamn student I ever had"

"fucking moron"

etc.

NewJeffCT

(56,829 posts)
3. Yes, and other currencies around the world gain value
Sat Aug 11, 2018, 09:36 AM
Aug 2018

since the dollar is so ubiquitous, including the Russian Ruble.

no_hypocrisy

(46,182 posts)
5. Also it's a method to accelerate debt payments.
Sat Aug 11, 2018, 09:44 AM
Aug 2018

If you inflate the value of the dollar, you pay more dollars toward a debt that only adjusts for interest accrued, not for inflation.

The total of the National Debt is more than $21 trillion dollars (thanks to the tax cut sham) and interest could be another $1 trillion. https://money.cnn.com/2018/03/15/news/economy/interest-on-the-debt/index.html
And that's with the low interest rates. If the Fed raises interest rates, the entire sum increases.

Well, the only way to "stay ahead" of the debt is to lower the value of the dollar at this rate. Instead of paying back one dollar for one dollar, imagine doubling that amount. Now you can pay two dollars for the value of one. Hey! That really speeds things up.

Germany during the Weimar Republic years tried this nifty little trick, to repay the reparations demanded by the Treaty of Versailles. Result: If you wanted to buy a stick of butter in the morning, you'd need to bring a wheelbarrow full of worthless Deutschmarks to the store. If you waited until the afternoon to buy that butter, you'd need at least two wheelbarrows full of money.

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