Wednesday, November 11, 2015

Whoa, Trump Calls for the Collapse of the US Dollar by 15% to 40% Against the Yuan

In Monday's Wall Street Journal, Donald Trump wrote in an op-ed:
[T]he worst of China’s sins is not its theft of intellectual property. It is the wanton manipulation of China’s currency, robbing Americans of billions of dollars of capital and millions of jobs.
Again, special interests and crony capitalism have weakened the resolve of the Obama administration in confronting China over its currency ploys. Economists estimate that the yuan is undervalued anywhere from 15% to 40%. 
I fully expect that in the not too distant future the US is going to experience the ramifications of a declining dollar, especially soaring price inflation,  even without Trump's negotiating "skills."

In the op-ed that Trump makes clear as president that he would do everything he can to start the collapse of the dollar, including instituting tariffs, which, of course, would make the price inflation consequences even worse. He writes
On day one of a Trump administration, the U.S. Treasury Department will designate China a currency manipulator. This designation will trigger a series of actions that will start the process of imposing countervailing duties on cheap Chinese imports, defending American manufacturing and preserving American jobs.


  1. I don’t think we need to wait for government to solve a problem we can solve on our own.

    This issue concerning being able to buy things from China too cheaply because China is taking advantage of us. There is a simple solution. We get Walmart to put little (or maybe big) jars beside each check out, When you make a purchase of an item made in China, knowing the price is too low because they are taking advantage of us, simply put an equivalent amount of money equal to the amount they have underpriced their goods in the jar to be used to fund jobs here in the good ole US of A. For example, if you buy a vacuum cleaner for $40, take 40% of that amount ($16) and put in the “jobs jar”. This way the jobs issue is resolved and China can just continue to give us reduced price stuff. We have solved the problem ourselves and all is well.

    Wait, I lost out on the deal because it cost me 40% more! On second thought, just let government raise my price. That way I don’t have to continue to force myself to be the good guy at the check out.

  2. What about the world's largest currency manipulator -> the United States?