Come on everyone will want to hold their reserve currency in a sinking dollar because it'll be worth more!

Ha, I'd say to try not to align anything he does with logic - you will likely not be able to make much of a connection, unfortunately. Your smooth brain processing still isn't smooth enough to be at their level.

The thing is, that billion dollar is worth a billion dollars of stuff. A weak currency is not the same as inflation. It's just the value of your currency compared to all the other currencies.

If you are doing manufacturing, then having a weak currency is good. You buy raw materials locally, you take those abroad and sell them, and then you have more US dollars to buy raw materials again.

If you're importing, though, then the opposite is true. You prefer a strong currency. The USA currently imports more than it exports.

Giving the boffins in the White House the benefit of the doubt, maybe they want to strengthen the manufacturing industry within the USA? They are losing pretty badly to China on that front. (China intentionally keeps its currency weak for this purpose, BTW). It's pretty clear that the USA wants a war with China, but that's pretty difficult to supply if you can't actually make anything locally.

I mean it can be a valid strategy to gain 'market share' in the world. China does this successfully. This is good for big exporting companies and sucks for the population regarding buying imported goods.

Because China basically produces everything, the Chinese can simply buy domestic products to offset the negative effect.

But yeah for a country like the USA, which doesn't produce nearly as much this will just suck. Imported goods will be more expensive (even more so with the genius tariffs) without the option to buy domestic goods because there simply are none.

It's the same logic that says that paying off the national day is easy all you have to do is hyperinflate the dollar and then you can pay it off by selling one sandwich

That's a chain of reasoning with more than two steps, so it's not one that could have fit in Trump's tiny mind.

Yeah, but don’t worry, they defeated inflation!

Except that the company does make actual profit from the declining value of its employees' salaries.

And why would anybody want to buy anything from the United States anyway if they're going to have a tariff war over any transactions that could occur at any time in the future?

I mean, a weaker currency really does boost your export value. That's why Canadian farmers tend to consider the weaker CAD a benefit - they get paid more CAD per yuan when exporting soy or canola for example.

The issue is that the US intentionally positioned itself with a strong dollar so they can import stuff cheaper. The deal for American "exorbitant privilege" was essentially "hey America, you can have the world as your shopping mall with a strong currency for cheap imported goods, but in exchange you'll provide the backing for collective defense with your extra budget, stay stable, and buy our goods". Trump wants to have his cake and eat it too, maintaining the effective global tax via USD transactions but also have a weaker dollar for American exporters. This is all that hubbub about "reducing trade deficits"... which were created intentionally as part of that deal in the Bretton Woods/post-Bretton Woods Era.

US consumers like cheap phones, TVs, imported fruits, and travel. The strong dollar is a necessity for this. Much of the US debt is heavily subsidized as a side effect of a strong dollar as part of that exorbitant privilege exchange. They can have their weaker dollar but they'll lose the benefits from it and I don't think they'll accept that easily. Throwing all that away to strengthen your export market is deeply foolish, but the mechanisms at play do work generally as they claim.

Don’t forget China.

Not true. Keeping your investments outside of the US while the dollar sinks lets your money go a lot further in the US.

He’ll leave the US completely bankrupt and walk away with the billions he grifted on office.

Not sure what the markets have to do with anything but the DJIA has been down pretty much for 5 days straight. The USD as well, brief spike but down steadily over the last ~week.

So yeah, dollar weaker with a market decline.