Tuesday, March 21, 2017

Why Trump will have to trash the dollar to create jobs

If Donald Trump really wants to Make America Great Again, he’s going to have to Make the Dollar Weak Again first.
So argued hedge fund manager Mathew Klody of MCN Capital Management at this week’s Grant’s investment conference in New York.
He made an intriguing case.
If Klody’s right, Trump may just be blowing smoke when he talks about tariffs and border-adjustment taxes.
And, most importantly, if Klody is right, we should also buy foreign currencies, especially those issued by emerging markets. Sooner or later, the president will need to drive down the dollar, and for those based in the U.S. that will drive up foreign currencies.
Market Watch — Opinion
Why Trump will have to trash the dollar to create jobs
Brett Arends, columnist


Dan Lynch said...

I disagree with Klody.

A businessman's decision to build a manufacturing plant in America is a long term decision. A tariff provides more certainty than an exchange rate that fluctuates from day to day.

Ralph Musgrave said...

That Market Watch article is BS. Given that the economy is already at capacity (at least according to the Fed) how is it possible to create more jobs? There is always JG of course, but Trump clearly does not have that in mind.

Schofield said...

Unscrupulous countries can manipulate money because it has no intrinsic value. The use of trading rules are the antidote.

Andrew Anderson said...

Who needs wage slavery anyway? What is needed is social justice and that includes the resources (largely stolen by and via a government-privileged usury cartel) needed to WORK FOR ONESELF.