Trump trade advisers plot dollar devaluation16 Apr 2024 14:04
When you set out a policy to devalue your currency and a large amount of your currency is held by foreigners, why would they keep hold of the currency? So then they must switch to something else they think will hold value... GOLD?
https://www.politico.com/news/2024/04/15/devaluing-dollar-trump-trade-war-00152009
Claude summarises the article as:
'Here is a 250-word summary of the key points from the article:
Economic advisers close to former President Donald Trump are exploring ways to deliberately devalue the U.S. dollar if he were elected to a second term. This idea is being championed by Trump's former trade chief Robert Lighthizer, who is seen as a potential Treasury secretary pick for a future Trump administration.
The goal would be to make U.S. exports more competitive globally and potentially reduce the country's trade deficit. Lighthizer and his allies believe an overvalued dollar is a key contributor to the trade deficit. Methods being considered include unilateral action or negotiating with other countries, potentially using the threat of tariffs.
However, such a move would carry significant risks. It could reignite inflation, undermine the dollar's status as the world's reserve currency, and invite retaliation from other nations. Wall Street and its supporters in Washington are expected to strongly oppose the efforts, as a weaker dollar could devalue U.S. assets.'