How could making our dollars less valuable be a good thing?

how could making our dollars less valuable be a good thing?

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4d chess baby!!!

more imports, fdi, more tourism

Hes very, very smart. Like he said a million times 395838e8e8D chess.

Weakening your currency makes it easier to sell things.

Trump is the guy who plays mahjong with chinese checkers rules.

A weak currency allows other countries to afford your goods increasing rGDP. Thats why places like China artificially weaken their currency to ensure lots of trade.

If your currency is cheap compared to other countries then people will import things from your country.

If 1euro = 10 US dollars then Europeans will buy from America instead of buying home produce.

It is a fine balance though. If you devalue your own currency too much then any imports your country needs will become very expensive and the price of imported goods and services will rise.

What you need to aim for is a currency level that gives you the best value on imports and exports balance.

It makes exports easier. The trouble begins when multiple countries get into competitive devaluation driving their currencies down to export more.

It's pretty simple, the stronger the dollar is relative to other markets, the more American labor costs relative to other markets.

The dollar is too strong right now, other shithole currencies like the Euro, Yen, and Renminbi have devalued their currencies a retarded amount by stimulus and capital leaving the country.

People will horde dollars instead of engaging in commerce with it if it gets over valued.

>how could making our dollars less valuable be a good thing?
Really? I mean, it's bad. But it's bad in the, ''aint nothing so bad it aint good for something''. You really don't know what a devaluation of your currency does that's good? Don't they teach basic economics in 'Murican schools?
If US dollars are less valuable in the global economy, buying stuff from other countries becomes more expensive. Thus making people financially motivated to buy stuff made in your country rather than import stuff.
Am I going too fast, or are you getting this?
Ahhh, this burger gets it
there is hope for you all yet

Protip: the Eurozone contains both Germany and Romania. If Romania had its own currency, it would trade lower than the Euro, while Germany would trade higher. Compare the exports of the two countries.

Double protip: China pinned the renminbi exchange rate to usd for ages. Compare the exports of the two countries.

Triple protip: when your currency goes down, what happens to the amount of shit your country exports? When your country exports more shit, what happens to unemployment?

>What you need to aim for is a currency level that gives you the best value on imports and exports balance.

Currencies should naturally find their own value balance based on the competitiveness of each economy with respect to one another. Central banks and governments fuck this process up.

>Don't they teach basic economics in 'Murican schools?
Depends on the location and teacher. While I was taught it in Mississippi, the state with the worst education standards, my nieces were not taught it in Illinois, yet my kid was taught it in Texas.

Hyperdimasional quantum computed 3+1 d tictactoe

Good for exports. It is also a way of making US labour more competitive if it maintains. It might will make imported goods more expensive though so will encourage buy American and build American.

Here is my question though.

Lets say I make 10 widgets at a cost of $200 per and I can export them for $300/ea for $1000 profit.

Now lets say the dollar drops 20%.

Now it cost $250 to make and I can export them for $375, so I make $1250, but the dollar is 20% less valuable, so its the same profit.

The only difference is now everyone's savings and income is 20% poorer.

*sigh*
It makes imports more expensive and exports less expensive.

Well that's the point

4d poverty

he wants to make our salaries worthless

>other countries to afford your goods
US doesn't have any manufacturing

>be US
>use petrodollar to artificially overvalue your currency
>constantly start wars in the middle east to maintain your petrodollar
>use your overpriced currency to debt other countries and leach interest from them
>ignore your own debt because it's value is completely under your control and you owe it in USD
>retard president starts devaluing it

Devaluation of currency helps pay denbts too.

Yes, but you're not trying to pay them off yet.

If you owe the bank $1000, they own you.

If you owe the bank $1000000000000000 you own them.

We bring back factory work by making the labor cheaper for owners due to weakness of the dollar but keeping minimum wage the same.

See, he's not forgetting the forgotten man and woman. Soon enough well turn into China and have those factory jobs for all the Midwestern idiots and coal miners. They'll get their precious jobs and make $9 an hour and then get boots blasted when they find out gas is now $5 a gallon. Luckily, if the dollar is weaker, the rest of us civilized folk can just ask for higher salaries at our real jobs and we'll be fine.

Increases exports

>our salaries
You're an Australian you stupid cunt.

>worthless
He wants to lower unemployment. More exports = higher employment.

America runs on the engine of cheap debt, debt that it has taken on consistently for years. The reason it has been able to take on debt is trust. Since America is losing ground militarily, trust is falling. At some point, cheap credit will become unavailable, there will be much wailing and gnashing of teeth, the debt will start to be called in, the US will begin to default on private and maybe even public loans, and the USD will get raped.

Maybe Trump knows what he's doing and is aiming for a soft landing. Maybe he just wants to raise employment so the proles will vote him in again.

the dollar is less valuable only to external markets. Its a change to the exchange rate. Its change in worth to you is dictated by the inflation rate of the currency. The inflation rate is going to go up because imported goods are more expensive, but probably by less than the exchange rate change. (% of goods you buy imported vs domestic)

But how does it? see Cost of labor and parts go up as well. So there is seems to be no net benefit. Or am I missing something? Even if cost of labor is less:

If a factory makes say 10 widgets that cost $100 labor(lets say 10 workers at $10ea) and $100 parts to export them at $300 ea for $1000 profit.

Now lets say the dollar drops 20% but you pay your workers they same.

Now the widget cots $100 labor but $125 parts, and the factory can export them for $375/ea for $1500 profit.

But who benefited? The workers still get $10 (which is not worth $8), the factory owner gets 20% more, but the workers get 20% less...

Plus everyone's savings are 20% less. So what am I missing here?

You're assuming the wages would increase with inflation. They mostly don't, meaning that it costs less to export things in real terms.

kill dante

Ok so really devaluation is just a way to extort workers and boost business owner's profits?

>dollar less expensive
>cheaper at Walmart
Fucking dumbass op.

Because nobody can afford your exports, you idiot.

Basically it's good for companies but it fucks over the average guy. It might me good in thr sense that the jobs might not leave, but you'll be making less in real terms.

I just landed in London today now my dollars are worth less...

Ok I get it now. Corrupt governments devalue currency to fuck over the working class for their own personal financial interests. thx pol

Germany keeps Euro intentionally weak to grow its GPD and economy. Germany can export stuff to other countres cheaply and get MAD DOSH

"STRONG" doesn't mean "GOOD" always. Nor "improvement".

JUST

your 'civilized' job may only exist to support the industries operated by those 'midwestern idiots'. In net the banks exist to shuttle capitol to these industries, the entertainment industries exist to entertain the workers, the gadget industries exist to sell to them.

Wow. Sup Forums doesn't understand basic economics. What a surprise.

Cost of parts go up.
Labor stays the same if the populace is too stupid to realize they need to ask for higher wages to compete with the devaluation of the dollar. We keep minimum wage as is and the masses don't pay attention to what's happening, you just got yourself a cheaper labor force. The type of people who work manufacturing are the type that wouldn't realize this until it's too late. They'd just be happy to finally have the factory open up again.

If he figured out a way to make that work, he can do anything tbqh.

It means people overseas can afford your products as they're being sold in Yankee dollars. Not that anyone buys American products outside America.

like what happened in greece, you have to have a currency value reflective of the actual wealth of the people.

this is one of the few things i have ever agreed with trump on, but if obama said that he would call it dangerous socialism and "picking economic winners"

trump is literally exploding with bullshit

Shut up you fucking idiot.

Imagine that the USD = 1 GBP.

If your goods cost 300USD and the same good produced in Britain costs 200GBP then the Brits source their product domestically.

Now imagine that the USD = 0.5GBP

If your goods cost 300USD and the same good produced in Britain costs 200GBP then the effective cost of your good in GBP is 150GBP because 1USD = 0.5GBP. So the Brits import your goods.

Strong currencies import. Weak currencies export. If Drumpf wants to be a manufacturing export powerhouse he needs to shit all over the USD. The problem is that when he does that everything you import will become more expensive. It's a balancing act between cost of imports vs export targets.

And drug dealers sell drugs to addicts. Doesn't make the addict not an idiot.

and economists don't understand it either.

it's a fucking religion at this point. then again, what else could make-believe fake currency economies be?

poetry.

Jews require inflation to profit.

That's not true at all.

China devalues its currency so that its exports are super competitive which has fuelled its explosive growth and lifted millions out of poverty.

>HURR EVERYTHING THE GOVERNMENT DOES IS BAD
Kill yourself.

have you ever considered, just as an intellectual exercise, removing the jews from your estimations of the way the world works

Parts and labour don't go up unless they're imported.

Use your brain for once in your life.

No jobs= nobody able to purchase any imports. No opportunity for advancement. The petrodollar has been used to great effect by the US, but it is damaging us long term economically and socially.

Checked and Keked.
>Not sure if you're calling Trump a creative snowflake or cryptic autist.

It makes our exports more competitive in international markets, and it makes traveling to and investing in the U.S. more attractive to foreigners.
t. econ nerd

Sure if you're making $5 a day farming rice and a factory opens up offering $15 you'll be better off even if the value of the currency decreases by 10%. But that wouldn't be the case in the US really and it would fuck over the tens of millions of people that actually do have savings and good jobs already. In China everyone was already poor as shit at the time.

It's just a meme, Paddy. The point is that banksters fuck with our economies and normies are too stupid to realize that they are literally being robbed by their own banks.

I don't get it, please explain.

>even if the value of the currency decreases by 10%
The value of the currency is totally irrelevant unless you're buying imports.

Currency devalued by 20% =/= everything costs 20% more. It means IMPORTS cost 20% more.

Devaluation =/= inflation.

no

to put it really simply for pol to understand:
there is no such thing as a good strong dollar forever
weak currency means hard times to grow strong men (work and sell)
strong currency means good times to fuck around (buy and enjoy)

Economic models, I meant. You know, the basic ones that you learn in high school or can learn with a few google searches. You would think that those who browse a politics board would at least have this basic understanding.

But no, it turns out that a large number of Sup Forumstards are as stupid as the 'dumm libruls' they love to complain about. Curious, it's almost as if stupid exists on both sides of the spectrum. Who would've thought.

It lowers the real value of your savings if you want to exchange it for foreign currency.

It also depends how your currency is devalued. If you are 3rd world country the government prints more money, devaluing its currency. This directly leads to inflation, and your currency also becomes worth less on the global markets.

What China does to devalue its currency is it buys dollars off the global markets making them scarcer. The Yuan becomes more prevalent and therefore cheaper in dollars. This is the Trumpian currency manipulation. They are not printing money to devalue. You can manipulate currencies in all sorts of ways using global markets.

You can do both of course.

Just when I was almost done saving up dollaroos this happens FUCK.

If I'm holding USD, what should I do?

Correct, but again that's only relevant for buying imports (or travelling overseas).

It also makes imports more expensive, which would raise prices.

Currency devaluation has no effect on prices

investopedia.com/terms/d/devaluation.asp

are you really making me say the economics meme?

It affects imports, which means most of things you buy would be affected.

Depends what do you want to do

>You're an Australian you stupid cunt.
I work in the US you faggot

>Cost of labor and parts go up as well.

No, they don't. Not unless you're retarded enough to be importing all of your imports and using exclusively foreign labor.

The fact is that the largest expenses for lower-class white people, rent/mortgage and staple food, are both valued in USD, and thus not subject to discount due to a strong dollar.

Also, the dollar has been kept artificially strong by virtue of being the world reserve currency (inb4 muh petrodollar), and a conscious strong dollar policy since at least the Clinton administration.

>He wants to lower unemployment. More exports = higher employment.
Why should people who have a job care? He's going to destroy people's savings and their salaries "for more employment"? Fuck off with this globalist bullshit.

yup, it's called quantitative easing
and china got away with it simply because... wait for it......

japan does it worse

Let us put this in simple terms even a burger can comprehend.

Imagine that (you) are coming from Europe, and y(you) have 100 euros to spend. When you exchange them for burgerdollars, you will get about $105 USD about now. That is a "strong dollar" in comparison to recent exchange rates.

Now, if (you) have enough brain cells left to imagine it a bit differently, would (you) be happier if (you) could get about $150 USD for (you)r 100 euros? That's what the exchange rate was just a few years ago. What we could call a "weak dollar" in comparison.

Now, stay with me and try not to hurt anything.

Imagine (you) are an international company and (you) want to spend 10,000,000 euros on burger products. Would you rather have $10,500,000 burgerdollars to spend on burger products? Or would (you) like to have $15,000,000 burgerdollars to spend on burger products?

because you dont understand money, antifa. maybe your buddies on leftypol can explain it, but i doubt it because they dont work so they dont know the value of money

Make money

Correct, but it would also make exports more competitive increasing employment and wages.

Basically, if you're a net importer you want your currency strong. If you're a net exporter you want your currency weak. There's more to it than that that makes it far more complicated (e.g. you're a net exporter of finished goods but you have to import the raw materials - what do?) but that's the gist.

The US is a net importer so a strong USD is good for consumers because it lowers the price of their goods. US living standards have been kept up by its developed economy where it doesn't actually rely on exporting goods for its wealth. Trump wants to shift back to exporting manufactured goods, which means that the US dollar needs to be weaker. That means you'll probably see domestic consumption in the US fall, because manufacturing is never coming back to the US.

>US dollar drops
Manufacturing comes back in the form of highly automated production lines that employ a tiny fraction of what they used to (see: farming) and meanwhile cost of living goes up because US is a net importer. Same applies to tariffs etc.
>US dollar stays strong
Manufacturing never comes back because it's not competitive.

BUY GOLD BUY GOLD BUY GOLD BUY GOLD

Trump, neocons and U.S corporations and the rich hate China because they won't open their financial institutions to U.S takeover.

When dollar is cheaper, foreign people buy more stuff from your country. So it benefits your export. I haven't bought anything from there in a long time because of dollar being way too strong atm.

I have to disagree. Yes Japan is doing 'bad' stuff. They have a huge budget deficit, so the Japanese Central Bank prints money and buys government bonds. This gives the govt cash. BUT they have been doing it so long that like 40% of the budget is interest on the pre-existing debt.

That's different what china is doing with its currency manipulation. (though maybe Japan is doing it too?)

QE is what the United States did after 2008. Here the FED (our central bank) printed money and purchased all sorts of assets: - but mostly bonds. The printed cash they paid for the assets ended up in the economy, giving a short term boost. Eventually, they can sell the assets they purchased, and suck up the dollars they pushed into the economy.

where I'm wrong please speak up.

More people can afford US goods (and services).
We've had to impise negative interests rates because the Swiss Franc was too high.

Of course the US is making debt payments, the country has never defaulted.
Well, time to go borrow a gorillion yuan. I always wanted my own country.

I gotta pay 1050 fucking dollars for a 500 digital piano. I know my shitty country is to blame but still.

*impose

My point exactly. The cost of living here would go up.

if America had nothing to sell how are we the richest country on Earth?

stay retarded and huff down another durrie ya waster

Exactly. I remember those times when it was very profitable to buy stuff from the u.s


Even those semi high shipping costs made it totally worth it

we still make lots of stuff, but we are increasingly cruising on Debt (20T$) and the petrodollar, and the assets and infrastructure we built up in the 50's-80's.

Yeah I remember (kind of) when our currency was 1:1. That turned out great later...

>US is a net importer

You're assuming that this is some form of fixed value, though. If imports get more expensive (making domestic goods a more favorable alternative) and exports get more competitive, you could see that flip.

>where I'm wrong please speak up.

I think you missed the part where QE is shady as fuck, at least in terms of the nuts-and-bolts of the execution.

weakens the poor and nigger classes of america

>how to increase export

> If imports get more expensive (making domestic goods a more favorable alternative) and exports get more competitive, you could see that flip.
For sure, but this would be a drop in your quality of life.

If domestic goods are more competitive it's only because imported goods have gotten more expensive, not because domestic goods have gotten cheaper.

If domestic goods actually could compete on price with imported goods, you'd already be making them.

For sure the US could become a net exporter, but that wouldn't be in its interests. At least, not until "real" automation comes.

Not enough for the balance to go positive. There's no US manufacturing can be what it used to be.

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