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NEWS REPORT:

President Donald Trump wants the U.S. to increase its exports and lower its imports. Thanks to a historic decline in the value of the U.S. dollar, he may get his wish — but at a cost he may not have anticipated.

Over the past six months, the dollar has declined more than 10% compared with a basket of currencies from the U.S.’ major trading partners — something it has not done since 1973. Today, it sits at a three-year low.

The simplest explanation for the decline is that global investors now expect the U.S. economy to no longer outperform the rest of the world as a result of Trump’s tariffs and worsening fiscal issues. Even with U.S. stocks returning to record highs, the return on other countries’ equities has been even stronger. Meanwhile the return on lending to the U.S. is expected to decline as growth here slows.

It wasn’t supposed to be this way. Many, including members of Trump’s own Cabinet, assumed his tariffs strategy would strengthen the value of the dollar relative to foreign currencies. The thinking behind it was that as American consumers began to purchase fewer foreign goods, those other countries’ currencies would weaken relative to the dollar.

Read More Here: https://www.nbcnews.com/business/economy/us-dollar-falls-lowest-value-since-1973-what-to-know-rcna216469


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One response to “The U.S. dollar has fallen at the fastest clip since 1973. Here’s what that means.”

  1. Anyone who actually reads the “big beautiful bill” knows that this is literally the rich stealing from the poor. The rich get the permanent larger tax breaks, while the average American gets the temporary tax brackets already in place. (This bill only extends the current tax bracket we’re used to). And every deduction for the average American has an * asterisk mark. Most Americans don’t get OT or work for tips, but those getting those deductions are capped. And the military industrial complex and its supporting corporations get billions of free taxpayer dollars to advance the beast system even further. 

    This adds -$3.3T in deficit over a decade, and raises our annual deficit from -$1.3T annually to -$1.7T at least. And does anyone think the government is done spending money after this? The inflation we’ve been used for the past five years is here to stay. Cost of living goes up 15-20% YoY while people are lucky to get their 3% raise. So conservatively peoples net income has been dropping -10% YoY.

    Not only have Americans been dealing with inflation, but there is shrinkflation (making products smaller) and cheapflation (making products break down faster), and even enjunkification (companies purposely making their goods and services frustrating to use).

    Trump has also made it clear that he wants a weaker dollar. A weaker dollar makes American exports more competitive is a fallacy. Materials will always be adjusted for what the dollar is worth. A more correct statement is a weaker dollar makes the labor cheaper.

    And in the past five months, has anyone actually heard Trump mention how he’s going to improve the average American’s life that’s been robbed from us? No. Maybe a very generalized statement, but I’ve never actually heard any empathic statements about the average American.

    All this to say Trump and republicans have let their voter base down. The other party offers more problems than answers as well. Even the popular alternative news sources are turning a blind eye to the recent reckless fiscal policies of this country. So the bright side of all this is, is I completely understand how much of a disappointment and letdown this worldly system is.

    ETPW, Keep doing what you’re doing. Please keep informing us what is going on in our country and world, and also post what’s going on in God’s kingdom here on earth.

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