The US dollar is sinking like a rock

[AndreasHG]

The dollar continues its run to new lows. Just five months into the Trump II administration, the U.S. dollar has already lost against major foreign currencies as much as it lost in four years during the Trump I administration.

 

Fortunately for our American friends living in Thailand, the Thai baht is going through a bit of a weakness. That’s why the dollar’s depreciation against the Thai baht since the start of the Trump II administration is relatively small: just 5.1%.
But with 3.5 years left, Trump II is well on his way to achieving his MAPA (Make Americans Poor Again) goal, beating his remarkable first term feat, when the US dollar depreciated 16.8% against the Thai Baht.

 

 

[swissie]

11 hours ago, AndreasHG said:

The dollar continues its run to new lows. Just five months into the Trump II administration, the U.S. dollar has already lost against major foreign currencies as much as it lost in four years during the Trump I administration.

 

Fortunately for our American friends living in Thailand, the Thai baht is going through a bit of a weakness. That’s why the dollar’s depreciation against the Thai baht since the start of the Trump II administration is relatively small: just 5.1%.
But with 3.5 years left, Trump II is well on his way to achieving his MAPA (Make Americans Poor Again) goal, beating his remarkable first term feat, when the US dollar depreciated 16.8% against the Thai Baht.

 

 

 

[swissie]

Just now, swissie said:

 

Since January, the US$ has tanked 12% versus the Swiss Franc. Investment gurus in Switzerland are thrying to explain to their Swiss investors, why they have made no money with their US investments.

 

Decades ago, currencies fluctuated maybe 5% per year. These days, this fluctuation can take place within 2 to 3 weeks. With much delay, financial "experts" have now begun to incorporate "currency fluctuations" into their "recommendations". Better late than never.

 

Only problem: To "hedge" against a further decline of the US$ costs 5% per year.

 

The curse: Appearantly there are only 2 "save heavens" left, Gold and the Swiss Franc.

 

[frank83628]

11 hours ago, AndreasHG said:

The dollar continues its run to new lows. Just five months into the Trump II administration, the U.S. dollar has already lost against major foreign currencies as much as it lost in four years during the Trump I administration.

 

Fortunately for our American friends living in Thailand, the Thai baht is going through a bit of a weakness. That’s why the dollar’s depreciation against the Thai baht since the start of the Trump II administration is relatively small: just 5.1%.
But with 3.5 years left, Trump II is well on his way to achieving his MAPA (Make Americans Poor Again) goal, beating his remarkable first term feat, when the US dollar depreciated 16.8% against the Thai Baht.

 

 

 just like the stock market devastation a couple of months ago...currencies fluctuate just like the stock market, thats the name of the game, what a load of  screetchy Bollo x, where is the stock market today?.. pathetic attempt at an anti trump thread... AGAIN

[Yagoda]

1 minute ago, frank83628 said:

 just like the stock market devastation a couple of months ago...currencies fluctuate just like the stock market, thats the name of the game, what a load of  screetchy Bollo x, where is the stock market today?.. pathetic attempt at an anti trump thread... AGAIN

From a Ukrainian loving German anti free speech, Socialist, so consider the source.

[cjinchiangrai]

Trump is exploding the economy with one moronic decision after another. From the aggressive extortion tactics to clueless tariffs, he cannot make any kind of coherent policy. The biggest failure is that he assumes all the other countries are going to sit back and do nothing. They are not, they are just excluding the US from the market, and who could blame them?

[JAG]

But, but, but, doesn't Trump have his own Crypto currency, shouldn't people in the USA invest in that, along with gold (sneakers, watches and smartphones) as a hedge against currency fluctuations?

[NoDisplayName]

4 minutes ago, JAG said:

But, but, but, doesn't Trump have his own Crypto currency, shouldn't people in the USA invest in that, along with gold (sneakers, watches and smartphones) as a hedge against currency fluctuations?

 

I don't expect a rebranded $150 made-in-China T-Mobile smartphone purchased for $500 with a rebranded overpriced service contract will be worth all that much after 47 gets 25'd.

[Cameroni]

11 hours ago, AndreasHG said:

The dollar continues its run to new lows.

 

No it hasn't, stop posting lies and misinformation. As you can see here the dollar is not at a new low, far from it. Kindly  stop posting outright lies.

 

[Yagoda]

17 minutes ago, Cameroni said:

No it hasn't, stop posting lies and misinformation.

Thats all they have and ever had.

[frank83628]

48 minutes ago, cjinchiangrai said:

Trump is exploding the economy with one moronic decision after another. From the aggressive extortion tactics to clueless tariffs, he cannot make any kind of coherent policy. The biggest failure is that he assumes all the other countries are going to sit back and do nothing. They are not, they are just excluding the US from the market, and who could blame them?

How have you been personally effected?

[Harrisfan]

36 minutes ago, Cameroni said:

 

No it hasn't, stop posting lies and misinformation. As you can see here the dollar is not at a new low, far from it. Kindly  stop posting outright lies.

 

Lefties study art at Uni

[KhunLA]

Down 10%, so what.  Trump ran on a weaker dollar, as good for US exports.  $1 is still $1 in the USA.  Buy USA and avoid tariffs, build manufacturing & jobs.

 

What is so hard to understand ?

 

Add to that, and the Consumer Price Index rose at an annual rate of 2.4%, less than economists expected.  

[Thailand J]

I am not worried, I keep very little cash. At 64 I am still fully invested in stocks.

 

US dollar devaluation will make American products cheaper overseas.

40% of S&P 500 revenue is from outside US. Not only the sales will increase, the revenue will convert into  more devalued dollars. Good for the stock market investors.

 

 

 

[Yagoda]

48 minutes ago, Harrisfan said:

Lefties study art at Uni

And not even good art

[Cameroni]

19 minutes ago, KhunLA said:

Down 10%, so what.  Trump ran on a weaker dollar, as good for US exports.  $1 is still $1 in the USA.  Buy USA and avoid tariffs, build manufacturing & jobs.

 

What is so hard to understand ?

 

Exactly. Plus the Dollar was on a massive bull run fairly recently, it was only natural that it would go down.

[JackGats]

If you own shares (stock) it's good to have them in a different currency from that of your regular income (eg pension). Fluctuations then kind of cancel out.

 

I still remember the days during the first decade of this centry when the dollar was 1 euro = 1.5 USD. The present exchange rate is still far from that.

[swissie]

1 hour ago, Cameroni said:

 

No it hasn't, stop posting lies and misinformation. As you can see here the dollar is not at a new low, far from it. Kindly  stop posting outright lies.

 

Never mind all those "indicies". Against the Swiss Franc the US$ has lost 12% within 2 monthts. There must be something wrong with the "reserve currency" of the world.

[swissie]

Concerning the Swiss Franc versus the US$.

 

In 1965 I had to pay 4 Swiss Francs for 1 Dollar.

In 1978 I had to pay 1,65 Swiss Francs for 1 Dollar.

Today I pay 0,79 Francs for 1 Dollar.

 

Anymore questions?

[spidermike007]

Trump does not know how the stock market works, but I think you can go one step further and say he does not know how the economy works, and on a more important level he knows nothing anything about globalization and all the intricacies involved in manufacturing internationally.

 

There's a reason why that's taking place, there's a reason why manufacturing has shifted overseas. It didn't happen in a vacuum and that manufacturing will not return to the US, not during our lifetime. It is just a slogan and a concept that he used to very craftily deceive millions of people into voting for him. 

 

It would appear at this point that Trump's seesaw approach to tariffs is having a dire effect on the US economy, thousands of jobs are being lost every day, the stock market is crashing (and believe me that crash has only just begun) and many countries are re-thinking their relationships with the US, realizing that the US is not the dependable ally they thought it was.

 

Many are avoiding visits to the US which could decimate American tourism, and many nations are likely planning their manufacturing in such a way that they are considerably less dependent on American imports, exports, and sales.

 

So where does that leave America in the grand scheme of things, and how badly could Trump's policies come back and bite him on his enormous butt? 

 

In the minds of many of us Trump is grossly overestimating the importance of the US and the dependence of other nations on the US. Granted the US economy is still huge, but it's not immune to damage, it's not immune to punishment by other nations, it could start shrinking, and it's not immune to crashing. 

 

 

[swissie]

Of Importance: If a coutry needs to impose import tariffs, it means that the home economy can no more compete with the rest of the world.

No matter how you slice it, it's the essence of it all. Period. 

[Cameroni]

24 minutes ago, swissie said:

Never mind all those "indicies". Against the Swiss Franc the US$ has lost 12% within 2 monthts. There must be something wrong with the "reserve currency" of the world.

 

Nothing wrong at all, as has been said upthread already, the current president has decided he wants a lower Dollar. Plus the Dollar, not so long ago was on a major bull run. It's perfectly normal that it would go down. If you look at the all time US Dollar Index, you will see the Dollar has been much lower, and the current movement is perfectly normal.

 

 

[Harrisfan]

13 minutes ago, spidermike007 said:

Trump does not know how the stock market works, but I think you can go one step further and say he does not know how the economy works, and on a more important level he knows nothing anything about globalization and all the intricacies involved in manufacturing internationally.

 

There's a reason why that's taking place, there's a reason why manufacturing has shifted overseas. It didn't happen in a vacuum and that manufacturing will not return to the US, not during our lifetime. It is just a slogan and a concept that he used to very craftily deceive millions of people into voting for him. 

 

It would appear at this point that Trump's seesaw approach to tariffs is having a dire effect on the US economy, thousands of jobs are being lost every day, the stock market is crashing (and believe me that crash has only just begun) and many countries are re-thinking their relationships with the US, realizing that the US is not the dependable ally they thought it was.

 

Many are avoiding visits to the US which could decimate American tourism, and many nations are likely planning their manufacturing in such a way that they are considerably less dependent on American imports, exports, and sales.

 

So where does that leave America in the grand scheme of things, and how badly could Trump's policies come back and bite him on his enormous butt? 

 

In the minds of many of us Trump is grossly overestimating the importance of the US and the dependence of other nations on the US. Granted the US economy is still huge, but it's not immune to damage, it's not immune to punishment by other nations, it could start shrinking, and it's not immune to crashing. 

 

 

Doomsday rubbish. 

[Harrisfan]

15 minutes ago, spidermike007 said:

stock market is crashing (

Huh? Its up since January.

[bunnydrops]

I take all predictions with a grain of salt but one major financial institution is predicting another 7% drop before the end of the year.

[swissie]

1 hour ago, Cameroni said:

 

Nothing wrong at all, as has been said upthread already, the current president has decided he wants a lower Dollar. Plus the Dollar, not so long ago was on a major bull run. It's perfectly normal that it would go down. If you look at the all time US Dollar Index, you will see the Dollar has been much lower, and the current movement is perfectly normal.

 

 

All fine and good, how has an alpine republic, (founded in 1291),consisting of less than 9 million habitants has reached a monetary status that has become a international monetary "measuring-stick"? 

 

I know why. Do you? To lose 12% within 2 months is "normal" to you as a currency loss?. Explain this to the rest of the world.

 

[EVENKEEL]

7 hours ago, spidermike007 said:

Trump does not know how the stock market works, but I think you can go one step further and say he does not know how the economy works, and on a more important level he knows nothing anything about globalization and all the intricacies involved in manufacturing internationally.

 

There's a reason why that's taking place, there's a reason why manufacturing has shifted overseas. It didn't happen in a vacuum and that manufacturing will not return to the US, not during our lifetime. It is just a slogan and a concept that he used to very craftily deceive millions of people into voting for him. 

 

It would appear at this point that Trump's seesaw approach to tariffs is having a dire effect on the US economy, thousands of jobs are being lost every day, the stock market is crashing (and believe me that crash has only just begun) and many countries are re-thinking their relationships with the US, realizing that the US is not the dependable ally they thought it was.

 

Many are avoiding visits to the US which could decimate American tourism, and many nations are likely planning their manufacturing in such a way that they are considerably less dependent on American imports, exports, and sales.

 

So where does that leave America in the grand scheme of things, and how badly could Trump's policies come back and bite him on his enormous butt? 

 

In the minds of many of us Trump is grossly overestimating the importance of the US and the dependence of other nations on the US. Granted the US economy is still huge, but it's not immune to damage, it's not immune to punishment by other nations, it could start shrinking, and it's not immune to crashing. 

 

 

Crash?????

 

Dow Index

43,819.27

Change

+ 432.43 1.00% 

S&P 500 Index

6,173.07

Change

+ 32.05 0.52% 

[JimHuaHin]

Looks good .... one hopes the Baht follows soon.

[Cameroni]

7 hours ago, swissie said:

All fine and good, how has an alpine republic, (founded in 1291),consisting of less than 9 million habitants has reached a monetary status that has become a international monetary "measuring-stick"? 

 

 

 

In 1820 the Netherlands had a GDP per capita that was 70% higher than Switzerland's, the rise of Switzerland in economic terms began about 1880. It still took some time though, in 1910 wages in Leipzig were 15% higher than in Switzerland.

 

In terms of GDP per capita Switzerland surpassed the UK in 1920 and the USA in the 1950s. However, in the 1980s, the USA again surpassed Switzerland iin GDP per capita. In fact Switzerland then lost ground in the last 25 years of the 20th century.

 

However, it is undeniable that this small country has been an economic success story. Of course there is not just one factor, but two factos stand out: 1) Strong competition, which resulted in efficiency and innovation and 2) a superb and balanced political system that provided stability.

 

But there are many factors, the small size of Switzerland for instance forced Swiss firms early on to internationalize. Switzerland has been open and international for a long time. The share of foreigners measured as the stock of foreign born residents relative to total population equalled 22 per cent in 2005 which ranks Switzerland in first place. This was of course also helped by Switzerland's geographic location, it was destined to be an international hub. Some of the largest multinationals in Switzerland were founded by immigrants.(e.g., Henri Nestlé, Charles Brown and Walter Boveri).

 

Then there's tax competition between the cantons. There are many reasons for Switzerland's leading economic position.

 

In fact tax is one such reason as well, since Switzerland was one of the original tax havens. Trillions of dollars poured into Switzerland from Germany, UK, middle east and Africa. This led to a massively strong financial sector. Much like the Cayman Islands today are one of the countries with the highest GDP due to their tax haven success.

 

Then there's the effect of the wars. Switzerland was always neutral, but unlike other neutral countries, Switzerland was spared by Germany in WWII. Part of the reason for that was that the Swiss national bank was profiteer, buying looted Nazi Gold and concentration camp gold. The Swiss national bank admitted it made a 20 billion francs profit on those dealings.

 

After wwII most of Europe was destroyed as well, German factories dismantled. This was not the case in Switzerland, which was able to step up production to service the destroyed European economies.

 

In fact the link with Europe's Blue Banana, that corridor that stretches from the UK through Benelux, Switzerland, Germany and northern Italy, was very important. Switzerland benefitted from the many inventions of that corridor and being able to export to this wealthy corridor of Europe.

 

 https://www.wider.unu.edu/sites/default/files/RP2009-25.pdf

 

7 hours ago, swissie said:

To lose 12% within 2 months is "normal" to you as a currency loss?. Explain this to the rest of the world.

 

Absolutely normal, in fact if you look at history what the Pound and other currencies have lost since 1880 it is a relatively small loss.

 

Again, the Dollar was on a massive bulll run not so long ago, it is only to be expected that it went down, especially with a president hell-bent on a lower US Dollar.

 

 

 

 

 

 

[spidermike007]

10 hours ago, KhunLA said:

Down 10%, so what.  Trump ran on a weaker dollar, as good for US exports.  $1 is still $1 in the USA.  Buy USA and avoid tariffs, build manufacturing & jobs.

 

What is so hard to understand ?

 

Add to that, and the Consumer Price Index rose at an annual rate of 2.4%, less than economists expected.  

If you believe in the official government figure of 2.4% I have a bridge I can sell you for $500. Just PM me and we'll make arrangements for the bank transfer. 

 

I've been spending a lot of time in the states the last few years and I can tell you inflation has not slowed down, prices continued to increase at a staggering level, and real inflation is closer to 20%. The unaffordability factor in the US is climbing at a stunning pace.