No Country Can be Made Great by Devaluation
John Connally, President Nixon’s Secretary of the Treasury, once remarked to the consternation of Europe’s financial elites over America’s inflationary monetary policy, that the dollar ‘is our currency, but your problem.’ Times have certainly changed and it now appears that the dollar has become an American problem.
In a recent interview with the Wall Street Journal, the soon to be 45th President of the United States believes that the greenback’s strength – up some 25% against a broad basket of currencies since 2014 – is now ‘too strong,’ ‘killing us,’ and has hurt companies trying to compete overseas.*
A top Trump economics advisor, Anthony Scaramucci, reinforced his boss’ sentiment adding that ‘we must be careful of a rising dollar.’ Apparently, making America great again does not include the nation’s monetary standard.
Trump’s belief that the dollar is too strong also shows a distinct lack of historical understanding. Every great nation and empire (which Trump promises to restore America to) had a sound monetary system.
This post was published at Acting-Man on January 19, 2017.
Follow on Twitter
Recent Comments