It strikes me that regardless of what a Trump administration may want, markets may not oblige. currently, I would argue one of the key drivers of generic dollar strength is that there is so much USD debt outstanding outside the US, borrowers constantly need to get hold of dollars to service and repay that debt. those numbers, in the 10's of trillions of dollars, dwarf trade flows. the classic way to devalue a currency is to run loose monetary and tight fiscal policies in sync, but I dare anyone to explain to me the tight fiscal policies that a Trump administration will favor.
One has to wonder what the motivations are (other than ignorance) to implementing policy whose outcome directly undermines dollar-reserve status/ US hegemony. Rules based order al fuera? Trade-wars are easy to win? Idiocracy indeed.
It strikes me that regardless of what a Trump administration may want, markets may not oblige. currently, I would argue one of the key drivers of generic dollar strength is that there is so much USD debt outstanding outside the US, borrowers constantly need to get hold of dollars to service and repay that debt. those numbers, in the 10's of trillions of dollars, dwarf trade flows. the classic way to devalue a currency is to run loose monetary and tight fiscal policies in sync, but I dare anyone to explain to me the tight fiscal policies that a Trump administration will favor.
One has to wonder what the motivations are (other than ignorance) to implementing policy whose outcome directly undermines dollar-reserve status/ US hegemony. Rules based order al fuera? Trade-wars are easy to win? Idiocracy indeed.