Several people within the administration (particularly Stephen Miran) are highly in favor of dropping the value of the USD, as they believe it's about 25% higher than it should be due to being used as the international reserve currency:
<a href="https://www.hudsonbaycapital.com/documents/FG/hudsonbay/research/638199_A_Users_Guide_to_Restructuring_the_Global_Trading_System.pdf" rel="nofollow">https://www.hudsonbaycapital.com/documents/FG/hudsonbay/rese...</a>
> <i>Suddenly, the world is treating the US like a Developing country</i><p>It’s pretty clear trump himself is doing that, playing pump and dump with the entire economy.
Can someone explain why it isn't disingenuous to look at Euros?<p>Firstly, euros cost now as much as they did three years ago. So that is clearly a price that can be reached with any number of causes. Then, UK pounds cost only what they did last September. And other world currencies? Values vs the dollar are all over the map, up, down, and nearly unchanged. No clear trend at all.<p>I had heard a good way to check the absolute value of dollars is to google USDX. Guess what? It's not particularly low, well within the normal range of ups and downs.
This is paywalled but his earlier piece from the 9th has been opened to all:<p>"All the arguments for Trump's tariffs are wrong and bad"<p><a href="https://www.noahpinion.blog/p/all-the-arguments-for-tariffs-are" rel="nofollow">https://www.noahpinion.blog/p/all-the-arguments-for-tariffs-...</a><p>From it I learned that only 60% of Americans disagree with the statement "Tariffs are Tax Cuts".<p>And also that the chaos in the markets was muted because only 15% of traders even believed the tariffs would be in place for more than 6 months.<p>I'm somewhat saddened that this opportunity to touch the stove has not been fully utilised and so we are doomed to repeat it.
No it isn't 'capital flight' Noah - that's a fixed exchange rate concept. There are no fewer dollars in the US dollar currency area after the sale than before.<p>Specifically "Normally, when Treasuries get sold off, people park their money in cash, instead of moving it overseas. This time, a bunch of investors actually pulled their money out of America entirely."<p>They didn't, because to get out you require a bunch of other investors putting their money <i>into</i> America, otherwise there would be no exchange in the first place.<p>It's a fallacy of composition. Individual investors can sell their dollars and buy euros, but investors overall cannot. Somebody has to be selling euros and buying dollars, and the question has to be asked "what did they do with those dollars when they got them, and why were they coming in that direction in the first place?".<p>Liquidating static savings and pushing them back into the flow tends to cause more physical transactions to occur. It's taking money out of a drawer and spending it. That's likely stimulative.