Dollar seen as risky currency status alert

[Presnock]

20 hours ago, Cameroni said:

 

Trump has singlehandedly reshaped global trade in his image. All on the back of the awesome strength of the American economy. But people like you cannot see the big picture.

 

This is just phase 1 in a  major plan that will result in a new Bretton Woods accord.

 

Trump and his team are playing 4 dimensional chess whilst you lot are still listening to Taylor Swift.

 

 

IMHO you haven't the slightest idea of what is happening.  Trump inherited a strong economy (best in the world) markets at record levels and 401K's setting people up for retirement.  In less than 90 days, Trump has tanked the economy of the world, especially that of the US, weakened the dollar, lost the trust of almost all our allies, broken numerous constitutional laws and even the Supreme Court is having problems trying to protect him still.  But, I sure hope you are correct in your feelings as it will mean a better life for many Americans.  I am too old and well enough financially to survive Trump's goal of destroying the US economy.  His former college economics professor said of Trump's tariff plan - he would have given Trump an "F" for such a plan.  Meanwhile, if Trump stays his old self in negotiations, he will be walking back most of his plans, watching the markets tank too and his magaites beginning to wonder what kind of life they will have shortly.All in MO anyway as I have seen Trump failures for most of my life, beginning with his heel spurs day to escape the draft!

[Presnock]

On 4/19/2025 at 11:11 AM, Dan O said:

Perhaps if you put the blame where it originates and stop trying to deflect it to someone or somewhere else you would have more credibility.

 

Trumps actions are the current catalysts for whats going on not the dems or anyone else. No one wants the collapse of the dollar or the economy except Trump and his admin with their slash and burn approach to eliminating their perceived ills of the US without regard to anyone or anything.

 

Placing blame on others for his actions is a pathetic attempt to deflect and gaslight the true problem and its not the dems, the left or any past admin, it Trump and his brain dead minions.

Suggest you do some reading on history of fallen civilizations - that of the Romans as they sank themselves, leading to the Dark Ages!  Trump maybe studied that and this is his plan too so that everyone will be reading about him in the history books with a title something like the BIGGEST LOSER , IMHO anyway.

[Negita43]

The Dollar value relative to other countries currency is of course important but another issue is the "tradeability" of the currency you want to use - If I want to buy something in another country would they rather be paid in or accept Thai Baht or Dollars.

The dominance of the Dollar and indeed the US control of the international financial system is something several countries are trying to change.

[Cameroni]

1 hour ago, Presnock said:

IMHO you haven't the slightest idea of what is happening.  Trump inherited a strong economy (best in the world) markets at record levels and 401K's setting people up for retirement.  In less than 90 days, Trump has tanked the economy of the world, especially that of the US, weakened the dollar, lost the trust of almost all our allies, broken numerous constitutional laws and even the Supreme Court is having problems trying to protect him still.  But, I sure hope you are correct in your feelings as it will mean a better life for many Americans.  I am too old and well enough financially to survive Trump's goal of destroying the US economy.  His former college economics professor said of Trump's tariff plan - he would have given Trump an "F" for such a plan.  Meanwhile, if Trump stays his old self in negotiations, he will be walking back most of his plans, watching the markets tank too and his magaites beginning to wonder what kind of life they will have shortly.All in MO anyway as I have seen Trump failures for most of my life, beginning with his heel spurs day to escape the draft!

 

No, you Presnock don't have the slightest idea what is happening. Trump inherited a US economy that was completely castrated of its manufacturing capacity, a stock market where shares were massively overvalued, indeed for 15 years the Fed had been printing money and making cheap loans available thereby creating the core causes of inflation. That's right, wihile Covid and Ukraine contributed, the underlying root cause of inflation was the Fed itself, printing money and making cheap loans available for many years, thereby causing rampant consumer spending. In addition of course Trump inherited one of the greatest national debts the world has ever seen, accumulated by repeated Democrat administrations of the past. Indeed Clinton caused the 2008 financial crisis by making home loans available to the poorest blacks who should never have got a mortgage and in the end could not afford repayments.

 

So let's not pretend Trump inherited this wonderful economy, he inerited a cauldron of snakes, an economy saddled with a myriad of structural problems, which now fall on Trump to fix, one by one. And to his great credit he is doing that, and taking a long term view. 

 

To spout utter nonsense like "Trump wants to destroy the economy" does not help your case. Of course Trump is trying to fix the economy, and you can't remove tumors without causing some incisions and pain. However, the end result will be a revaitalised US manufacturing base, a devalued dollar making exports more competitive and a global trade system that treats America more fairly.

 

Trump is making America, and indeed the world, a better place. He is the right man at the right time and if you compare his presidency to Biden's, Trump accomplished more in 30 days than Biden did in a lifetime.  One shudders to think what would have happened if Kamala Harris were president, as you and your fellow Democrat apologists wanted.

[Presnock]

7 minutes ago, Cameroni said:

 

No, you Presnock don't have the slightest idea what is happening. Trump inherited a US economy that was completely castrated of its manufacturing capacity, a stock market where shares were massively overvalued, indeed for 15 years the Fed had been printing money and making cheap loans available thereby creating the core causes of inflation. That's right, wihile Covid and Ukraine contributed, the underlying root cause of inflation it was is Fed itself, printing money and making cheap loans available for many years, thereby causing rampant consumer spending. In addition of course Trump inherited one of the greatest national debts the world has ever seen, accumulated by repeated Democrat administrations of the past. Indeed Clinton caused the 2008 financial crisis by making home loans available to the poorest blacks who should never have got a mortgage and in the end could not afford repayments.

 

So let's not pretend Trump inherited this wonderful economy, he inerited a cauldron of snakes, an economy saddled with a myriad of structural problems, which now fall on Trump to fix, one by one. And to his great credit he is doing that, and taking a long term view. 

 

To spout utter nonsense like "Trump wants to destroy the economy" does not help your case. Of course Trump is trying to fix the economy, and you can't remove tumors without causing some incisions and pain. However, the end result will be a revaitalised US manufacturing base, a devalued dollar making exports more competitive and a global trade system that treats America more fairly.

 

Trump is making America, and indeed the world, a better place. He is the right man at the right time and if you compare his presidency to Biden's, Trump accomplished more in 30 days than Biden did in a lifetime.  One shudders to think what would have happened if Kamala Harris were president, as you and your fellow Democrat apologists wanted.

well to begin with you err in calling me a fellow Democrat as I have been against them before I was evern old enough to vote in the 60's as my working parents had explained to me about the evils of the Democrat Party.  Along the way to the end of the Biden term, you skipped over the first Trump term, who zoomed the US debt too and if he had done a better job then, Biden would not have stood a chance of being a president ever.    i will be the first to admit that I am no economy wizard, but I do recognize certain others known to be well versed in that field, and I read and listen to them speak and I have yet to hear any of them talk about how wonderful Trump has done so far in just a few months.  i worked for as a civil service employee for 36 years, plus 4 military and I was very familiar with many of the senior people within the government administrations during that time period.   I totally agree that Biden was worthless but as I mentioned, when Trump had a chance to fix things he failed miserably and now I look those he has selected to head all the different agencies and the criteria being they must be rich and must listen to what Trump wants.  Totally against that constitution to which I have taken the oath many tmes - If Trump did follow his oath to that, and did things legally and with capable people (I have watched the SIGNAL team and recognize that they are total amateurs when it comes to running the nation's offices for the citizens and the betterment of the nation.   I would never follow blindly as you magaites are doing, believing every lie he puts out almost every time he opens his mouth, and then has to change whatever 180 degrees as someone around him has to explain why that statement makes him look like the idiot that obviously is.  Anyway you have your opinion and I have mine but to me you are the one spout utter nonsense like it comes straight out of that of the Trumpers.  Good luck, I think you are going to need it.   

[BLMFem]

1 hour ago, Negita43 said:

The dominance of the Dollar and indeed the US control of the international financial system is something several countries are trying to change.

And they're ably assisted by Trump.

[Cameroni]

5 minutes ago, Presnock said:

well to begin with you err in calling me a fellow Democrat as I have been against them before I was evern old enough to vote in the 60's as my working parents had explained to me about the evils of the Democrat Party.  Along the way to the end of the Biden term, you skipped over the first Trump term, who zoomed the US debt too and if he had done a better job then, Biden would not have stood a chance of being a president ever.    i will be the first to admit that I am no economy wizard, but I do recognize certain others known to be well versed in that field, and I read and listen to them speak and I have yet to hear any of them talk about how wonderful Trump has done so far in just a few months.  i worked for as a civil service employee for 36 years, plus 4 military and I was very familiar with many of the senior people within the government administrations during that time period.   I totally agree that Biden was worthless but as I mentioned, when Trump had a chance to fix things he failed miserably and now I look those he has selected to head all the different agencies and the criteria being they must be rich and must listen to what Trump wants.  Totally against that constitution to which I have taken the oath many tmes - If Trump did follow his oath to that, and did things legally and with capable people (I have watched the SIGNAL team and recognize that they are total amateurs when it comes to running the nation's offices for the citizens and the betterment of the nation.   I would never follow blindly as you magaites are doing, believing every lie he puts out almost every time he opens his mouth, and then has to change whatever 180 degrees as someone around him has to explain why that statement makes him look like the idiot that obviously is.  Anyway you have your opinion and I have mine but to me you are the one spout utter nonsense like it comes straight out of that of the Trumpers.  Good luck, I think you are going to need it.   

 

Indeed Trump could have done better in his first term, for instance he let China evade tariffs by going through Canada and Mexico. However, he's learnt his lessons, that is no longer possible.

 

However, Trump has selected exceptionally able people in his finance team, for instance Scott Bessent. He worked for George Soros and was part of the team that structured the trade that broke the Bank of England. He also lectured on economics at Yale. People like this are formulating Trump's trade strategy. It is way too early to judge this policy, but it looks like it will succeed.

 

We don't need luck, we just need Trump to stay alive and keep doing what he's doing. Success will follow as sure night follows day.

 

[Presnock]

11 minutes ago, Cameroni said:

 

Indeed Trump could have done better in his first term, for instance he let China evade tariffs by going through Canada and Mexico. However, he's learnt his lessons, that is no longer possible.

 

However, Trump has selected exceptionally able people in his finance team, for instance Scott Bessent. He worked for George Soros and was part of the team that structured the trade that broke the Bank of England. He also lectured on economics at Yale. People like this are formulating Trump's trade strategy. It is way too early to judge this policy, but it looks like it will succeed.

 

We don't need luck, we just need Trump to stay alive and keep doing what he's doing. Success will follow as sure night follows day.

 

I agree, we all have our dreams too though they obviously are different based on our life experiences.  In some ways I hope you are correct, not for me but for my family and friends I leave behind as I leasve this world.  I feel sorry for those that have lost their opportunity now to retire as their 401K's have been wiped out and more to follow.  

[ericbj]

May be of interest:

 

https://thehill.com/homenews/administration/5256332-trump-economic-advisers/

 

 

[Cameroni]

1 minute ago, Presnock said:

I agree, we all have our dreams too though they obviously are different based on our life experiences.  In some ways I hope you are correct, not for me but for my family and friends I leave behind as I leasve this world.  I feel sorry for those that have lost their opportunity now to retire as their 401K's have been wiped out and more to follow.  

 

Some people have been hurt, none so more than Elon Musk and Trum himself, whose companies lost billions in value. More people will get hurt. It will be for the greater good however. 

 

These tariffs are not for fun, there is a plan behind this policy. It was formulated by Bessent & Co in a paper, which seeks to offer ways to devalue the dollar and yet keep the dollar as the reserve currency.

 

America should not fall into the trap which the UK fell into, going to war against its main economic rival, Germany. Yes, the UK succeeded in preventing German hegemony in Europe, but at the price of losing the empire, losing the power to be what it once was. Now it lingers as a dystopian haven for Turkish chicken shops and Turkish barbers, worrying about whether foreigners will continue to finance its economy.

The USA is not the UK obviously, America is vastly more powerful and vastly richer, however, its Chinese competition is no joke either. Things are different now though, the US and China can't really go to war now, due to nuclear mutual destruction. Nevertheless, if the US does nothing, it will be a lot worse off than if it succeeds in putting China in its place, ie second place.

[Cameroni]

4 minutes ago, ericbj said:

May be of interest:

 

https://thehill.com/homenews/administration/5256332-trump-economic-advisers/

 

 

 

A very strange piece, as it does not even mention in passing Bessent's many accomplishment, but I guess one should expect that.

[FlorC]

3 hours ago, sandyf said:

Your words.

"Three decades later, the dollar officially became the world’s reserve currency"

 

Three decades from 1914 would be 1944 and Sterling was the reserve currency.

The poster I replied to wrote centuries .

Look at the title : it says dollar as in USD , not sterling .

The USD is only reserve currency sinds 1945. 

If 80 years is more than "centuries" , I guess you are right.

To me a century is 100 years, centuries more than 100 years , not 80 years.

[connda]

On 4/18/2025 at 2:23 PM, BritManToo said:

More nonsense,

Everything is priced in USD, therefore the USD is required for international trade.

And probably the most stable currency in the world.

Whence goes the USD, so goes the world.

[nauseus]

As per usual, most here are ignoring the debt problem.

 

Trump mentioned the huge debt and said he wanted a lower dollar and USD interest rates before the election. The intent is to at least cut the interest payments on that debt, which are well over 1T/year now. He is seeing the dollar go down but bond yields actually increased last time the Fed fund rates were cut - that is not supposed to happen and the recent bond auction flopped - a huge and difficult problem and there is little confidence in the USD currency and dollar treasuries already. The Fed is losing control. The can may be kicked down the road (again) for a while with further "QE" but that will just make the end game even more painful. 

 

 

[Cameroni]

1 hour ago, nauseus said:

As per usual, most here are ignoring the debt problem.

 

Trump mentioned the huge debt and said he wanted a lower dollar and USD interest rates before the election. The intent is to at least cut the interest payments on that debt, which are well over 1T/year now. He is seeing the dollar go down but bond yields actually increased last time the Fed fund rates were cut - that is not supposed to happen and the recent bond auction flopped - a huge and difficult problem and there is little confidence in the USD currency and dollar treasuries already. The Fed is losing control. The can may be kicked down the road (again) for a while with further "QE" but that will just make the end game even more painful. 

 

 

 

No, that' s wrong, Trump doesn't want lower interest rates because of debt servicing. He's a businessman and wants lower interest rates to spark business. That's why he wants the lower dollar too, to improve US export figures.

 

That's the right approach of course. The debt problem is easily solved, you just need to get the debt in the manageable 3-4 per cent of GDP range, so increasing the GDP is one way to do it.

 

If that fails, indeed the Fed can just print money again. Inflation, okay, but it didn't kill anyone.

[Dan O]

4 hours ago, Cameroni said:

 

No, you Presnock don't have the slightest idea what is happening. Trump inherited a US economy that was completely castrated of its manufacturing capacity, a stock market where shares were massively overvalued, indeed for 15 years the Fed had been printing money and making cheap loans available thereby creating the core causes of inflation. That's right, wihile Covid and Ukraine contributed, the underlying root cause of inflation was the Fed itself, printing money and making cheap loans available for many years, thereby causing rampant consumer spending. In addition of course Trump inherited one of the greatest national debts the world has ever seen, accumulated by repeated Democrat administrations of the past. Indeed Clinton caused the 2008 financial crisis by making home loans available to the poorest blacks who should never have got a mortgage and in the end could not afford repayments.

 

So let's not pretend Trump inherited this wonderful economy, he inerited a cauldron of snakes, an economy saddled with a myriad of structural problems, which now fall on Trump to fix, one by one. And to his great credit he is doing that, and taking a long term view. 

 

To spout utter nonsense like "Trump wants to destroy the economy" does not help your case. Of course Trump is trying to fix the economy, and you can't remove tumors without causing some incisions and pain. However, the end result will be a revaitalised US manufacturing base, a devalued dollar making exports more competitive and a global trade system that treats America more fairly.

 

Trump is making America, and indeed the world, a better place. He is the right man at the right time and if you compare his presidency to Biden's, Trump accomplished more in 30 days than Biden did in a lifetime.  One shudders to think what would have happened if Kamala Harris were president, as you and your fellow Democrat apologists wanted.

You mat want to read up on recent history as the situations you refer to didn't happen exactly like you are implying nor for the reason you listed.  You're way off base and trying to cover for a problem with inaccurate information. Typical of a trump loyalist

[RayC]

12 hours ago, Cameroni said:

 

Well, of course the industry sectors mentioned in the White House press release have dual significance, they would benefit denfense, but rebuilding a manufacturing base in autos, shipbuilding, pharmaceuticals, machine tools, basic and fabricated metals etc, would also benefit the peacetime economy, always assuming there are buyers of course. With these US tariffs there probably would be, as even China is scrambling to see what US products it can buy to keep the trade deficit down with the US. Many nations will do that just to escape tariffs in the future, so tariffs have effects over and above money infllow.

 

I am a bit confused by this press announcement myself, since it mentions pharmaceuticals, but the US is already a world leader in pharma, with 6 of the top 10 pharma companies being American, including the very largest ones. But I guess the others are obvious candidates for improvement, autos in particular. The demise of Chrysler was heartbreaking to see. But then the same is happening in Japan, with Nissan now going to the wall, Sweden had it with Saab, and of course all of the UK's car companies went down or were bought by the Chinese too. No doubt there will be more pain in the auto industry thanks to the Chinese EVs.

 

Yes, it's true that all European companies pay VAT too, but the US does not levy this tax on European companies, so you can see how Americans view it as unfair.complication of doing business in Europe.

 

"Always assuming there are buyers of course". There's the rub. Overseas demand for US autos, ships, machine tools, etc. is not high and this is not simply a function of price. For example, the data shows that European consumers prefer Mercedes and BMW to Ford and Chrysler. The imposition of tariffs against European products will not stimulate demand for US cars, it may well have the opposite effect. People do not like bullies and that is exactly what Trump is perceived as being.

 

I can only repeat what I said previously. ALL companies, regardless of their domicile, who sell their wares in Europe are liable for VAT. VAT is not unilaterally imposed on US companies. It is NOT a tariff and the fact that the US does not impose VAT is irrelevant. So no, I do not see why Americans view the imposition of VAT as an unfair complication of doing business in Europe. It is nothing of the sort. No companies like paying taxes but China, Japan, etc do not think that their companies are being discriminated against because they have to pay VAT when doing business in Europe. This is in no way a justification for Trump imposing tariffs on European goods 

[Cameroni]

16 minutes ago, RayC said:

"Always assuming there are buyers of course". There's the rub. Overseas demand for US autos, ships, machine tools, etc. is not high and this is not simply a function of price. For example, the data shows that European consumers prefer Mercedes and BMW to Ford and Chrysler. The imposition of tariffs against European products will not stimulate demand for US cars, it may well have the opposite effect. People do not like bullies and that is exactly what Trump is perceived as being.

 

The counter argument would be the American car success stories in Europe, the Ford Mondeo, the Ford Fiesta and many others sold rather well in Europe. if the car is good it will sell, provided the price is right. European consumers are much like any other, if a good car can be bought at a low price, they don't mind buying Romanian or Korean cars. The problem is that the American cars so far were not very competitive in Europe, barring the exceptions that sold well. I personally drove a Cadillac and have to say it is a very fine car and I am surprised Cadillacs do not sell well in Europe.

 

I understand what you're saying about VAT, but I do think it is seen as an unwelcome complication and barrier to doing busines in Europe by many American companies. Since the US do not have this. 

[ericbj]

If the WSJ says that Trump's tariffs were designed to strengthen the dollar, I do not believe them.  Instead, IMHO, the tariffs were designed to initiate world-wide negotiations on a restructuring of tariffs to produce a situation more favourable to U.S. exports and less favourable to its imports.  In order to correct trade imbalances.  For the same reason Trump wishes to see a cheaper dollar.

 

The dollar is falling in purchasing power.  So is the euro, which therefore cannot be said to be 'soaring' in real terms.

Fiat currencies are pieces of paper of no guaranteed value, backed only by government decree that they are to be used as a means of commercial exchange.
Their value relies upon the confidence of those that use them.  Which can be related to scarcity or otherwise, and the reliability of the issuer.  As regards the reliability of the dollar's issuer this took a bad hit on the international stage from the Biden administration's use of it to sanction foreign powers.

Bank notes are no longer promissory notes that the issuer guarantees to redeem for real money.  I.e. gold.  (Or possibly bitcoin but certainly not other cryptocurrencies).

[honcho]

On 4/18/2025 at 7:40 PM, black tabby12345 said:

Do you trust the economic policy of the man whose firms bankrupted multiple times?

Also  busted for tax evasion so many times.

It is the man in the White House now.

 

yeptrust him!

[bdenner]

15 hours ago, Cameroni said:

 

< Snip> Trump inherited a US economy that was completely castrated of its manufacturing capacity, a stock market where shares were massively overvalued, indeed for 15 years the Fed had been printing money and making cheap loans available thereby creating the core causes of inflation. <Snip>

So what did Trump do about this problem during his 1st term:- 2017 - 2023? Let me guess. Cashed in using one form or another?

[placeholder]

16 hours ago, Cameroni said:

 

No, you Presnock don't have the slightest idea what is happening. Trump inherited a US economy that was completely castrated of its manufacturing capacity,

 

Completely castrated, huh? You sure about that?

China leads the world in manufacturing output, followed by the United States and Japan. These three countries account for a significant portion of global manufacturing output, with China leading the way. Germany and India also rank among the top manufacturing nations globally

 

AI Overview

Here's a more detailed ranking of the top manufacturing countries

• China: 31.6% of global manufacturing output.
• United States: 15.9% of global manufacturing output.
• Japan: 6.5% of global manufacturing output.
• Germany: 4.8% of global manufacturing output.
• India: 2.9% of global manufacturing output.
• South Korea: 2.7% of global manufacturing output.
• Russia: 1.8% of global manufacturing output.
• Italy: 1.8% of global manufacturing output.
• Mexico: 1.7% of global manufacturing output.
• France: 1.6% of global manufacturing output.

[placeholder]

16 hours ago, Cameroni said:

 

 Indeed Clinton caused the 2008 financial crisis by making home loans available to the poorest blacks who should never have got a mortgage and in the end could not afford repayments.

 

False 

Ellen Seidman, formerly the director of the Office of Thrift Supervision,
points out that the surge in subprime lending occurred
long after the enactment of the CRA, and that in 1999
CRA Lending During the Subprime Meltdown
Elizabeth Laderman and Carolina Reid*
Federal Reserve Bank of San Francisco
regulators specifically issued guidance to banks impos-
ing restraints on the riskiest forms of subprime lending.4
In addition, researchers at the Federal Reserve Board of
Governors have reported that the majority of subprime
loans were made by independent mortgage lending
companies, which are not covered by the CRA and
receive less regulatory scrutiny overall.5 In addition to be-
ing excluded from CRA obligations, independent mort-
gage companies are not regularly evaluated for “safety
and soundness” (a key component of the regulatory
oversight of banks) nor for their compliance with con-
sumer protections such as the Truth in Lending Act and
the Equal Credit Opportunity Act.6

https://www.frbsf.org/wp-content/uploads/cra_lending_during_subprime_meltdown11.pdf

 

[placeholder]

16 hours ago, Cameroni said:

 

, indeed for 15 years the Fed had been printing money and making cheap loans available thereby creating the core causes of inflation. That's right, wihile Covid and Ukraine contributed, the underlying root cause of inflation was the Fed itself, printing money and making cheap loans available for many years, thereby causing rampant consumer spending.

 

So your claim is that even though inflation wasn't rampant before covid, somehow the fed printing money was responsible for it afterwards?

 

https://www.macrotrends.net/2497/historical-inflation-rate-by-year

[placeholder]

16 hours ago, Cameroni said:

 

. In addition of course Trump inherited one of the greatest national debts the world has ever seen, accumulated by repeated Democrat administrations of the past. Indeed Clinton caused the 2008 financial crisis by making home loans available to the poorest blacks who should never have got a mortgage and in the end could not afford repayments.

 

Need I point out to you that George Bush inherited budgets that were in surplus and he demolished that surplus with his huge tax cuts favoring the rich? Does it also have to be pointed out to you that Bush gutted regulation of the financial sector. That the Great Recession which began during the Bush adminstration, was the fault of that financial sector? That Barack Obama inherited the worst financial crisis since the Great Depression? That Donald Trump actually increased deficits thanks to his tax cuts? And that deficits and the debt leaped during his first tenure in office? That now, not only does he want more tax cuts on top of those he already created, but he's also slashing the enforcement section of the  IRS which will lead to big drops in revenue? A double whammy.

 

[placeholder]

17 hours ago, Cameroni said:

 

No, you Presnock don't have the slightest idea what is happening. Trump inherited a US economy that was completely castrated of its manufacturing capacity, a stock market where shares were massively overvalued, indeed for 15 years the Fed had been printing money and making cheap loans available thereby creating the core causes of inflation. That's right, wihile Covid and Ukraine contributed, the underlying root cause of inflation was the Fed itself, printing money and making cheap loans available for many years, thereby causing rampant consumer spending. In addition of course Trump inherited one of the greatest national debts the world has ever seen, accumulated by repeated Democrat administrations of the past. Indeed Clinton caused the 2008 financial crisis by making home loans available to the poorest blacks who should never have got a mortgage and in the end could not afford repayments.

 

So let's not pretend Trump inherited this wonderful economy, he inerited a cauldron of snakes, an economy saddled with a myriad of structural problems, which now fall on Trump to fix, one by one. And to his great credit he is doing that, and taking a long term view. 

 

To spout utter nonsense like "Trump wants to destroy the economy" does not help your case. Of course Trump is trying to fix the economy, and you can't remove tumors without causing some incisions and pain. However, the end result will be a revaitalised US manufacturing base, a devalued dollar making exports more competitive and a global trade system that treats America more fairly.

 

Trump is making America, and indeed the world, a better place. He is the right man at the right time and if you compare his presidency to Biden's, Trump accomplished more in 30 days than Biden did in a lifetime.  One shudders to think what would have happened if Kamala Harris were president, as you and your fellow Democrat apologists wanted.

Tax Cuts Are Primarily Responsible for the Increasing Debt Ratio

Without the Bush and Trump tax cuts, debt as a percentage of the economy would be declining permanently

https://www.americanprogress.org/article/tax-cuts-are-primarily-responsible-for-the-increasing-debt-ratio/

 

[morrobay]

17 hours ago, Cameroni said:

 

Indeed Clinton caused the 2008 financial crisis by making home loans available to the poorest blacks who should never have got a mortgage and in the end could not afford repayments.

 

 

Re 2008 ,:  Bush promoted reckless financial deregulation. Egged along by that hack Greenspan who drastically lowered interest rates. Clinton had one of the best economies actually. Agree about the money printing .  Why weren't these bankers locked up for bundling bad loans into stocks. Re competitiveness: instead of devalueing the dollar how about improving manufacturing.

[Cameroni]

4 hours ago, placeholder said:

So your claim is that even though inflation wasn't rampant before covid, somehow the fed printing money was responsible for it afterwards

 

 

The Fed's Quantitative Easing was responsible for inflation. That is the case. Bankers, economists and experts disagree with your view that QE does not lead to inflation:

 

"My research compares the reported inflationary effects of QE and conventional monetary policy across 82 previous studies for the euro area, UK and US. This comparison shows that the reported inflationary effects of QE are two to four times higher than those of conventional monetary policy in the UK and US, but not in the euro area (see charts below). 

 

The result that QE generates more inflation than conventional monetary policy is therefore a general finding of academic research."

 

As this research shows that QE generates more inflation than conventional monetary policy, any explanation of the recent inflation surge should therefore consider QE as a possible factor.

 

https://www.thebanker.com/content/dd5946ac-33f5-518f-af14-a148e24127c7

 

Clearly, the Fed's QE is the underlying cause of inflation, which was exarcebated by Covid and Ukraine. Even if a cursory examination of inflation figures appears to show that inflation was not rampant prior to Covid, academic research clearly shows that QE does lead to higher inflation.

[Cameroni]

3 hours ago, morrobay said:

Re 2008 ,:  Bush promoted reckless financial deregulation. Egged along by that hack Greenspan who drastically lowered interest rates. Clinton had one of the best economies actually. Agree about the money printing .  Why weren't these bankers locked up for bundling bad loans into stocks. Re competitiveness: instead of devalueing the dollar how about improving manufacturing.

 

Greenspan was a disaster on many levels. Clinton did make that mistake of passing a law that forced banks to give loans to people who could not afford to pay them back. An obvious error borne from ideology, DEI led to the subprime mortgage crisis.

 

The bankers were not locked up because at the time the loans were repackaged they were not bad loans. It was the borrowers who defaulted who made them bad loans.

 

Indeed manufacturing has to be revitalised in the US. Trump is right.

[WorriedNoodle]

2 minutes ago, Cameroni said:

Trump is right.

Markets say otherwise. The markets are always right no matter who is POTUS. Now we see gold at all time highs and dollar and stocks falling. When people are investing in a rock rather than capital and innovation, there's your signal.