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Rethink on Trump hits dollar and world stocks

Rumor is that on the hill, the republicans are fighting his tax cuts. This is not what wall street wanted to hear. Stocks are going down a bit. Short term stuff. If the president continues to do what he says he will do, I believe this will all bounce back up.

I am waiting on the muslim registry.
 
No. :no:

People over-reacting, State and Federal officials acting with partisan hackery, MSM false and/or alarmist reporting, and every Alt-Left SJW activist acting like the world is "2.5 minutes away from Doomsday" is doing everything they can to destabilize the nation and delegitimize someone who has only been in office for 11 days is what is causing TONs of uncertainty. :yes:

Agree with his policies or not, Mr. Trump is merely acting to keep his promises. :shrug:

We are not seconds from doom. We simply have a terrible president in office and people are protesting him all over the world. He is term will eventually end.
 
'The U.S. dollar headed for its worst start to a year since 2008 on Tuesday while world stock losses, already the biggest in six weeks, grew after widespread protests against President Donald Trump's stringent curbs on travel to the United States.

Investors' hopes for a fiscal boost to the world's largest economy under Trump have been tempered by controversial and protectionist policies that have seen him suspend travel to the United States from seven Muslim-majority countries.'


Rethink on Trump hits dollar and world stocks | Reuters

The dollar is tanking.

https://www.bloomberg.com/quote/DXY:CUR


Thoughts?

I've read that the Muslim ban demonstrated to business leaders that Trump had been literal all along, which means that his isolationist and protectionist policies will be destructive to supply and manufacturing chains around the world. Business leaders were probably already apprehensive when Trump really tried to make the wall happen and floated his 20% tariff idea, but after the Muslim ban that's when the alarm bells really went off. Thus the stock market plunge.
 
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I've read that the Muslim ban demonstrated to business leaders that Trump had been literal all along, which means that his isolationist and protectionist policies will be destructive to supply and manufacturing chains around the world. Business leaders were probably already apprehensive when Trump really tried to make the wall happen, but with the Muslim ban that's when the alarm bells really went off. Thus the stock market plunge.

Seems logical to me.
 
Doesn't that make US products seem cheaper to foreigners ? Is that what China was doing for the last 8 years ?

It does...but it also makes imports more expensive. And considering America is a large net importer -- it would hurt Americans...at least in the short term.

And even if some jobs eventually were created because of it - almost every American would have to pay more for things since America imports many commodities like oil. Plus, many low income Americans depend on low cost imports for their day-to-day lives to make ends meet.

A cheaper dollar generally favors countries that have large trade surpluses...like China that runs massive trade surpluses and depends on her exports.

Basically, imo, cheap currency helps exports and hurts day-to-day living (unless your country imports VERY little and has all the raw materials it needs).
 
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I've read that the Muslim ban demonstrated to business leaders that Trump had been literal all along, which means that his isolationist and protectionist policies will be destructive to supply and manufacturing chains around the world. Business leaders were probably already apprehensive when Trump really tried to make the wall happen and floated his 20% tariff idea, but after the Muslim ban that's when the alarm bells really went off. Thus the stock market plunge.

I think it's funny a bunch of his own supporters don't take him literally. Thanks a lot Trump supporters.
 
Seems logical to me.

By the way, it should be noted that Wall Street has secretly inserted a hidden microphone into my home, and listens for when I make predictions and analyses about the market so that it can do the opposite, all just to embarrass me personally. So while my analyses have been alright in some other areas, anything I say on this topic should be taken with a grain of salt because my track record for predicting the stock market has been horrifically bad.

Which is why I premised my prior post with "I've read that..."
 
I think it's funny a bunch of his own supporters don't take him literally. Thanks a lot Trump supporters.

Yeah, one of my favorites was "You're not supposed to listen to what he says. You're supposed to see what he does. He communicates through non-visual cues."

Ugh.
 
It does...but it also makes imports more expensive. And considering America is a large net importer -- it would hurt Americans...at least in the short term.

And even if some jobs eventually were created because of it - almost every American would have to pay more for things since America imports many commodities like oil. Plus, many low income Americans depend on low cost imports for their day-to-day lives to make ends meet.

A cheaper dollar generally favors countries that have large trade surpluses...like China that runs massive trade surpluses and depends on her exports.

Basically, imo, cheap currency helps exports and hurts day-to-day living (unless your country imports VERY little and has all the raw materials it needs).

Well making foreign goods more expensive works out just fine for me .
 
The dollar losing some ground is actually good for the US, IMO. But it won't last long, the entire world depends on the stability of the US Dollar, and by default it will stabilize.

Tim-
 
Doesn't that make US products seem cheaper to foreigners ? Is that what China was doing for the last 8 years ?
It will make US products cheaper, but still not cheaper then China, or Mexico. Labor rates are still drastically much higher in the US.

So the US will be cheaper then Europe, Japan and Canada, but for the most part it already is. Most of europe does not try to compete on price, but on quality real or imagined of the goods produced. Japan has trade barriers to protect's domestic market and Canada is becoming more and more biased towards raw materials (losing manufacturing to China and Mexico for the most part.

Currency changes only really work for short terms or for require market adjustments. A healthy balanced economy with a drastic currency devaluation will just see higher inflation over the next few years making the currency devaluation a meaningless exercise as the costs of production will just increase to what it should have been without the devaluation.

China has had very high rates of inflation over the years, making the cost of production higher and higher, pegged currency or no. As a long term strategy currency devaluation does not work as shown by the multiple devaluations done by Mexico in the past, Italy in the past, Turkey in the past, to make up for unhealthy economies where leaders both political and economic did not want to restructure for long term health of the economy
 
Well, after booming for a while - probably on false hopes (far for the course the last decade or so) - the dollar is back below 100.
 
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