Dollar drops against basket of currencies after Donald Trump brushed off concerns over slide
The US dollar has fallen to its lowest level in four years after Donald Trump brushed off concerns over the currency’s fall, sending investors fleeing to traditional havens including gold and the Swiss franc.
The dollar dropped by 1.3% against a basket of currencies after the president’s comments on Tuesday, marking its fourth day of declines, then slipped by a further 0.2% on Wednesday morning.
“No, I think it’s great,” Trump said of the weaker dollar, during a visit to Iowa to promote his record on the economy. Asked whether he was concerned about the currency’s slide, he told reporters: “I think the value of the dollar – look at the business we’re doing. The dollar’s doing great.”
The greenback has tumbled by 10% over the past year, while Tuesday’s fall was the largest one-day drop since last April, when Trump announced his sweeping tariff plans, marking a global market sell-off.
It encourages foreign divestment which is good if you are in the crowd that thinks that trade is bad.
It also leads directly to rapid inflation as those dollars once used for trade are now sitting idle in the money pool. Rapid inflation is good if you own monopolies on essential goods like housing, fuel, groceries, and medical care as it provides cover for you to raise prices and decrease quality.
Also, with rapid inflation it becomes easier to hide graft and extortion in the government and maybe go after people like Powell for cost overruns on projects that could never have predicted that you would tank the economy.
Also…
Gold. It won’t be repatriated to foreign countries.
Oil. Once that market is cornered (and green alternatives killed) you own the economy.
Thanks for the response. So what does an individual do in response to impending inflation? Convert money to assets? Convert to a different currency?
I have been converting to another currency, every penny I can
Is it crypto?