O/T:- Trump Presidency 2.0 [hic sunt dracones]

[drillerpie]

Trump wants a weak $$$$ to make imports cheaper but, he will penalise imports by levying massive tariffs, said to be, to encourage people to buy American so I suppose it could work on two levels.

Cheap imports where massive tariff is collected - win

Discourages importation and creates a demand for home produced goods which will create jobs - win

He can probably get away with holding the value of the $ down to some extent because most Americans don't travel abroad. I read a stat that said 85% of Americans don't even have a passport.

What do I know.

No! That's wrong!

Trump wants a weak dollar to make exports from the US to other countries cheaper.

Trump (or any other president) can't really decide the value of the dollar. The Chairman of the Federal resserve decides interest rates, which are probably the main factor in the strength of a currency, because they stimulate or reduce demand for that currency. Higher demand for a currency means 'price' goes up, price in this case being exchange rate. The dollar got stronger the day after election day and has kept getting stronger ever since because currency traders are effectively betting that the Fed won't be able to reduce interest rates as it had announced it would (I think they had pre-announced 3 or 4 rate cuts of .25% in 2025) because Trump's policies are inflationary. This was confirmed by the chairman of the Fed in his last policy meeting, as he changed his line from 3 or 4 cuts in 2025 to 'we need to wait and see the data from Trump's policies'.

Holidaymakers don't really get a say in all of this to be honest. There are trillions of dollars of debt to service, trade deficits and surpluses to think about plus lots of other stuff. Nobody really cares if Karen has to fork out a couple more cents for her pi?a colada in Cancun.

[Med Pie]

No! That's wrong!

Trump wants a weak dollar to make exports from the US to other countries cheaper.

Trump (or any other president) can't really decide the value of the dollar. The Chairman of the Federal resserve decides interest rates, which are probably the main factor in the strength of a currency, because they stimulate or reduce demand for that currency. Higher demand for a currency means 'price' goes up, price in this case being exchange rate. The dollar got stronger the day after election day and has kept getting stronger ever since because currency traders are effectively betting that the Fed won't be able to reduce interest rates as it had announced it would (I think they had pre-announced 3 or 4 rate cuts of .25% in 2025) because Trump's policies are inflationary. This was confirmed by the chairman of the Fed in his last policy meeting, as he changed his line from 3 or 4 cuts in 2025 to 'we need to wait and see the data from Trump's policies'.

Holidaymakers don't really get a say in all of this to be honest. There are trillions of dollars of debt to service, trade deficits and surpluses to think about plus lots of other stuff. Nobody really cares if Karen has to fork out a couple more cents for her pi?a colada in Cancun.

Sorry, got that backwards

[Lullapie]

No! That's wrong!

Trump wants a weak dollar to make exports from the US to other countries cheaper.

Trump (or any other president) can't really decide the value of the dollar. The Chairman of the Federal resserve decides interest rates, which are probably the main factor in the strength of a currency, because they stimulate or reduce demand for that currency. Higher demand for a currency means 'price' goes up, price in this case being exchange rate. The dollar got stronger the day after election day and has kept getting stronger ever since because currency traders are effectively betting that the Fed won't be able to reduce interest rates as it had announced it would (I think they had pre-announced 3 or 4 rate cuts of .25% in 2025) because Trump's policies are inflationary. This was confirmed by the chairman of the Fed in his last policy meeting, as he changed his line from 3 or 4 cuts in 2025 to 'we need to wait and see the data from Trump's policies'.

Holidaymakers don't really get a say in all of this to be honest. There are trillions of dollars of debt to service, trade deficits and surpluses to think about plus lots of other stuff. Nobody really cares if Karen has to fork out a couple more cents for her pi?a colada in Cancun.

If you think that those that run countries can't have any positive impact on the value of their currency, you are misguided. If Trump came out and announced a ceasefire in the Ukraine and Israel, you don't think the dollar would move?

If Trump banned Chinese imports into the US, you think that it wouldn't impact on the dollar?

The Board of Governors are under the control of the President, whoever he/she/them/they are - there's no true independence. Why do you think they dropped the rates just before the last US election?

[drillerpie]

Ok. Well, I tried! 🙂

[BigFatPie]

Ok. Well, I tried! 🙂

I tried to teach my dog Chinese, with similar results.

[Med Pie]

I tried to teach my dog Chinese, with similar results.

Don't despair, at least you manage to produce it fluently, post after derisive, post.

[BigFatPie]

Don't despair, at least you manage to produce it fluently, post after derisive, post.

I see the FTSEs booming today, does that make Rachel from accounts a financial genius?

[Notsohumblepie]

I see the FTSEs booming today, does that make Rachel from accounts a financial genius?

London close: Stocks higher as UK growth misses forecasts
(Sharecast News) - London equities ended Thursday in positive territory, with investors buoyed by weaker-than-expected UK growth data that bolstered expectations of a potential interest rate cut by the Bank of England next month

Your statement is dead right , but perhaps the causes leave room for a little less optimism

[lunaspie]

I tried to teach my dog Chinese, with similar results.

You faced a Boxer Rebellion ?