General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTrump may tank the dollar
because he thinks it will help in the trade war against China.
https://www.bloomberg.com/news/articles/2018-08-08/jpmorgan-says-trump-may-sell-dollars-as-weapon-in-u-s-trade-war
dalton99a
(81,570 posts)"a stunning level of superficial knowledge and plain ignorance"
"Donald Trump was the dumbest goddamn student I ever had"
"fucking moron"
etc.
DemocratSinceBirth
(99,711 posts)NewJeffCT
(56,829 posts)since the dollar is so ubiquitous, including the Russian Ruble.
DemocratSinceBirth
(99,711 posts)no_hypocrisy
(46,182 posts)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.