The US is currently encountering one of the most dramatic electoral campaigns in its history. With Trump’s assassination attempt and Biden withdrawing his candidacy, the US is currently in the midst of a massive transformation. With the presidential campaigns in full swing, the candidates have presented different opinions on how they would like to protect the integrity of their currency, the weak US dollar.
Trump and his confidante, JD Vance, believe a frail dollar could bolster US exports, which in turn could help stabilize the dollar. But this view has gained notoriety among the masses. Let’s explore why Trump’s plan to derail the US dollar first before amping it up might weaken the dollar even more.
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Trump Wants a Weaker Dollar: Will This Strategy Truly Work?
![Trump Says China Pushing World off US Dollar Currency Standard is Equivalent to America Losing a World War](https://watcher.guru/news/wp-content/uploads/2023/04/ezgif-2-bbede1dca3-1024x575.jpg)
![Trump Says China Pushing World off US Dollar Currency Standard is Equivalent to America Losing a World War](https://watcher.guru/news/wp-content/uploads/2023/04/ezgif-2-bbede1dca3-1024x575.jpg)
Per a recent report by Financial Times, If elected as the president of the US, Trump’s idea of weakening the dollar to boost exports might be a total bust. The report says that the idea of Trump weakening the dollar looks “extremely unlikely,” as the move may be undermined by factors such as extensive taxes and policies.
Several economic experts and strategists have also weighed in on Trump’s US dollar devaluation idea. Analysts have stated how the USD devaluation idea can be expensive to execute and may usher in desired results. To weaken the American currency, Trump will have to overpower the policies that support the greenback. The said move could be a hard nut to crack considering a basket of policies that support the dollar from all directions.
“There is a big contradiction in the market today—Trump has been vocal about dollar depreciation, but his policies should support the currency, at least in the short term,” said Michaël Nizard, a fund manager at Edmond de Rothschild. As quoted by FT
Another analyst Al Hussainy, Global rates Strategist at Columbia Threadneedle shared how the counter effects of the change may echo louder than predicted consequences.
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“The cost of the disruption is so massive. The market here will be a powerful countervailing force,” said Edward Al-Hussainy.
Currency: Peter Schiff Shares His Opinion on Trump’s US Dollar Devaluation Idea
Notable economist Peter Schiff has chimed in to join the heated USD devaluation debate. Schiff commented on Robert Kiyosaki’s post that supported Trump’s view to weaken the American currency.
The economist shared how a weaker dollar might not work out in favor of the US economy. The move may result in the US encountering high oil prices, which may pose a negative impact on the prestige of the US economy.
“A weaker dollar may make some Americans richer, but overall it will make America poorer. It will also result in higher oil prices, even if we drill more of it. I think gold and silver could rise even more than your forecast, but Bitcoin could just as easily fall instead.”