Here's the real reason Trump wants to create economic chaos -- and why investors should be more afraid
If you think the U.S. dollar can’t fall a long way, think again.
The dollar could fall 29% against the euro before getting to the point where typical consumer goods and services cost the same. It could fall 18% against the Canadian dollar known, for some reason, in currency markets as “the Loonie” — before reaching the same parity. And it could fall a staggering 37% against the Japanese yen and an incredible 52% against the Mexican peso before prices levelled out.
So reports professor Werner Antweiler at the University of British Columbia’s Sauder School of Business, citing the authoritative data tracked by the Organization for Economic Co-Operation and Development, the international body for richer, more developed economies. “With the exception of the Swiss Franc and Icelandic Krona, the US dollar is unusually strong,” Antweiler tells me. “This means that US exports are relatively more expensive compared to goods produced elsewhere, and it also means that US imports are particularly cheap… The US dollar is currently going through a phase of broad over-valuation.”
This is the absolutely essential context for understanding the Trump administration’s economic, financial and trade policies, which economists and financial planners are increasingly describing as “the Mar-A-Lago Accord.” U.S. President Donald Trump wants to slash the value of the U.S. dollar against other international currencies, to make U.S.-manufactured products cheaper both at home and overseas while making other countries’ manufactured products more expensive.
https://www.msn.com/en-us/money/markets/here-s-the-real-reason-trump-wants-to-create-economic-chaos-and-why-investors-should-be-more-afraid/ar-AA1BIun3
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