Economist: Trump policies likely to drive up dollar
DAVID McHUGH
ricky l
Q: You're an expert on the Great Depression. In the 1930s there was a period when countries didn't cooperate, devaluing their currencies or putting tariffs on imports. Is there any relevance from that for today?
A: Yes, there is. Non-cooperative currency policies and exchange rate policies can lead to trade protectionism as well. So if the Trump administration grows unhappy about the strength of the dollar it has, probably, limited ability to push the dollar down in the short turn. ... But it can respond by slapping new tariffs on imports as a way of trying to neutralize the impact of the strong dollar. So conflicts over exchange rates spill over to conflicts over trade. And if you think that global supply chains are important to U.S. companies, all of that is at risk if currency conflict spills over into trade conflict and all this gets out of hand.
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Yes Donald Trump is doing what US did in the 1930s that cause Deep Depression and trigger the World War 2.
It is a dangerous trend that Donald Trump is treading into.
A: Yes, there is. Non-cooperative currency policies and exchange rate policies can lead to trade protectionism as well. So if the Trump administration grows unhappy about the strength of the dollar it has, probably, limited ability to push the dollar down in the short turn. ... But it can respond by slapping new tariffs on imports as a way of trying to neutralize the impact of the strong dollar. So conflicts over exchange rates spill over to conflicts over trade. And if you think that global supply chains are important to U.S. companies, all of that is at risk if currency conflict spills over into trade conflict and all this gets out of hand.
===
Yes Donald Trump is doing what US did in the 1930s that cause Deep Depression and trigger the World War 2.
It is a dangerous trend that Donald Trump is treading into.
