The Euro is getting uncomfortably strong against the USD in my view, we are close to 1.25... at 1.3 our German industry might run into a few export problems.
Can someone tell Mr. Wonderman aka Trump that he shouldn't continue to screw up the US economy so that a strong USD returns?
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>I'm a great businessman, believe me!
this is what happens when you elect a trustfund babby who has delusions that he "made" his fortune himself, kek
how is it bad? cheaper imports, fuck wagies
He is letting to go low to btfo of Merkel, and crash the German economy.
Weak $ mean good export and a great, healthy protectionism.
Just. As. Planned.
a weaker doller is better for us, hanz
As his election is months before he takes office, its likely some Obama enacted policy or spending that triggered the slide.
>Weak $ mean good export and a great, healthy protectionism.
The strange thing is that the Fed stopped quantitative easing and is even tightening interest rates. That the USD isn't strengthening in this context is a WTF is going on thing.
>x-axis doesn't start at 0
How does it feel to have a 95 IQ? Serious question
Look at the bottom of the chart
We're going back to mid 2017 levels
This is a mothing-burger
>a weaker doller is better for us, hanz
If you were an export nation, yes. But you are not an export nation, so it screws you even more - your imports are pricier while you aren't increasing your exports.
Inflation. That's why the fed is slowly increasing the interest rates. It actually started back in the spring of 2016 but they're too worried about the immediate effects of increasing it too high too soon.
The more incentive for us to make things here, Fritz. Oh, lest I forget: Fuck Krauts.
>implying we import anything besides Chinese trash against a undervalued yuan
I think we're going to be fine.
>We're going back to mid 2017 levels
No.
would imply that other nations start to import US made stuff, which isn't really going to happen. Not china, Russia, Europe, India, Asia or South America have any incentives to raise their US imports, quite the opposite. You had to crash the dollar to something around 1.5 or more to make it interesting for Europe. The others, no chance
>doesn't know that a weak dollar has been an open objective of the Trump administration
>weak currencies are bad
>coming from Germany, which thanks to the Euro could easily devalue the DM and stay competetive
stupid turk doesn't even know his host nation's history
>>implying we import anything besides Chinese trash against a undervalued yuan
>I think we're going to be fine.
ok... in 2016 you imported 2.2 trillion USD in goods. And only 20% of that was Chinese trash.
>doesn't know that a weak dollar has been an open objective of the Trump administration
Tell me oh mighty genius, how is a USD which devalues by 20% good for America if at the very same time the trade deficit widens?
Look back at the 50's, homo. This country was at its best when we made things hereand bought stuff made here. Only faggot proffessors drove Mercedes-Benz cars , Red blooded Americans drove Cadillacs or Lincolns. Jap shit was laughable knock off tin. They need our markets more than we need theirs.
Exportenomics to regenerate the American industry your dollar needs to drop to make it profitable to manufacture shit again.
high value usd is bad for export
>Jap shit was laughable knock off tin
It's not the 50s anymore, Cletus. Jap cars are the best bang for you dollar today, only 4x4s pickup trucks are worth buying from these american car manufacturers.
A weak national currency incentivizes exports which Trump is all about.
>at 1.3 our German industry might run into a few export problems
good, fuck germany
We ARE an export nation. Our economy is based in the service industry.
US economy was always heading for a collapse, but Trump did nothing to help it except hire the same people that caused this mess and the mess in 2008. He's a retard
>They need our markets more than we need theirs.
that might be true, but is no guarantee for rising imports from US based companies to this countries, unless you crash your currency to total worthlessness, which would spark a chain reaction killing the global economy and result in a lose-lose situation.
>homo
Stop projecting and learn to curse like a non shill
Protectionist measures would be absolutely pointless if done in conjunction with a rising dollar. Trump literally said a strong dollar is not ideal in April 2017, which is pretty much exactly when it started its steady decline.
>Our economy is based in the service industry.
Yes. But guess what, your service exports aren't making up for your trade deficit in goods.
all that liquidity has to go somewhere. QE is in the trillions
A low dollar is good for the US economy retard. You don't have many required imports and have an economy that builds damn near everything. That means more exports, more jobs.
I'd suggest a course in basic economics.
The high dollar discourages buying US products.
>I'd suggest a course in basic economics.
I suggest the same to you. I hold a PhD in economics, so a basic course won't help me any more, I am in too deep in the rabbit hole.
Those two sentences.......
They, ummm, dont go together like you seem to think.
How old are you really?
Weaker foreign exchange stimulates exports. You'll be importing less from Europe and exporting more to them.
>Service isn't a tradeable commodity
How old are you, my child?
Goes along with Trump’s agenda to bring manufacturing back to the country.
>devalue currency
>American exports cost less because USD cheaper on the ForEx
>countries buy more American exports
>manufacturing sector expands to meet new demand
Why do you think Trump was always bitching about China devaluing their currency?
You dumb Keynesian fuck you're a disgrace for EU. Anyone with half a brain knows that strong currency is the cornerstone of strong economy.
Eat shit socialist
You:
>We ARE an export nation.
>Our economy is based in the service industry.
Do you honestly not see the problem?
I am 37 kid. You?
We export services you retarded child larping as an adult. I can't believe I have to explain this to you.
>German economics education
Buuut where are we going to export?
How about the rest of EU, you fuckface, which is the strongest economy worldwide GDP wise and most of EU currency are linked to €. Strong €, strong consumer confidence.
Hahahahahaha, you were serious.
I notice you are unwilling to answer the question. When you get to college take some econ.
> going to college to take a course in economy
lamo
I honestly don't understand what kind of inane point you were going for at this point. Were you hoping that feigning some kind of intellectual superiority without making any kind of actual argument would get you anywhere?
Trump manipulate dollar like China to strengthen USA export;)
We are 71 cents to the GPB. Its getting fucking aggravating
BECAUSE TRUMP IS ABOUT TO ISSUE NEW CURRENCY
Loving this because it means I can commission American artists for good quality art for cheap.
My point was that a "service industry" based economy cannot, by definition, be an "export based" economy. This is basic shit.
Also, that you are either uninormed or dumb. I will assume uninformed but you are leading me to the latter.
It's because the US is making a lot of money which naturally decreases USD demand and that's why it's falling down. It'll stabilize and go back up soon.
>You can't export services
What the fuck are you doing? Seriously, think or fucking google shit first before you type.
>>homo
>Stop projecting and learn to curse like a non shill
Why are you ashamed to identify your nation matey?
Oh fuck kid. Go learn something, I am not going to give you macro 101 in a pol thread.
>dollar good for export
That meme died years ago, you amateurlet.
Like many advanced economies the US is turning into a service society.
The US has under 30% exposure, mostly products which don't have to compete by price.
They can easily buy the worlds trade surplus and sell it on their domestic market with a thicc plus, that's how you accumulate wealth with a strong dollar you autist.
>hahaha I was just pretending to be a retard
At this point I am pretty sure he is full on retard.
>TU degree
He is spot on you autistic homo, there really isn't much more to explain.
A devalued currency fucks over your middle class and their savings and promotes exports. It also encourages the rich to invest in assets to protect their money.
American corporatism.
No dipshit. As a German you should understand what an export based economy is. You have one.
Services are a useless commodity at the international level. Also what great services other than hollywood and silicon valley do we export? Even if you think an exported service is an export and not a chef moving overseas, then why would selling real material not be far more valuable?
You don't have one.
You are turning service society selling services and products which don't have to compete by price while importing for cheap with a strong dollar accumulating wealth.
Instead of sucking off your econ teacher you should have told him he is wrong.
>You are turning service society selling services and products which don't have to compete by price while importing for cheap with a strong dollar accumulating wealth.
Maybe its a language thing. Try rewording this sentence. It is incoherent.
In other news, no dumbshit. Service based economy is by definition one based on services (aka the plurality of GDP is services). An export based economy is by definition one based on exports (aka the plurality of GDP is based on exporting stuff).
Its so fucking simple a child SHOULD be able to understand it. Its also definitions. Definitions are not opinions to LARP about, they are fucking definitions.
By the way exported services, say hollywood movies, are counted as exports already. Jesus you kids who claim not to need econ in school...I am sure pol and youtube teach you really well...
The US dollar didn't even exist in 0 AD
It's not wording, it's logics.
He said services can be sold a s a commodity and are being sold as a commodity, you tried to win the spelling bee contest pretending not to be retarded, smartass.
Do you think the US should have a weak dollar, do you think the US should compete with China and e.g. Germany in exports?
Trump has stated he wants a weaker dollar for the last 2 years. Dumb faggot.
No fool, its wording. Your sentace remains incomprehensible.
"Exported services" are counted as exports you imbecile. Your point is invalid.
My opiniins on what the US, Germany, and China "should" do irt exports are not the topic here. The topic is a basic understanding of defintions. Which you and my retarded countryman are oblivious about it seems.
It's capital flux leaving the US, you have like three rate hikes a year now, any weakness in the dollar is a sign of smart money losing interest and hope in the US.
That said a weak dollar is bad for your economy as well, Trump is living the dinosaur's dream but there won't be any bombed out europe buying made in america ag-
So is the US not turning into a service society?
You basically put 'export-based nation' in his mouth to jack one off to definition dickriding.
What is it you want to say?
see
When something is good shitlibs say Trump inherited it. When it's bad, they say he caused it. Trump had no power until 2017 and even so he didn't do anything related to this right away.
Meanwhile Erope's economy has done pretty good. It looks like the USD to Euro rate was at a global high and started trending down before he was even president. I don't think speculation about him could have caused it or we could blame Obama for similar trends after Bush, which basically no one does.
Holy shit your reading comprehension is low. Where did I say the US was not already a service based economy? Has been for decades. Your country is an export based economy.
I wanted to say what I said. The dude is a dumbass and does not understand basic terms. Why did you decide to attempt to srick up for such an idiot?
reading comments again you maybe right
Thanks user, respect.
Since you asked my opinion earlier I will give it.
The US probably should increase its exports some as a share of GDP mainly to reduce negative capital outflows a bit. The US consumes most of what it produces though which is "good". A weaker dollar increases foreign demand and hence allows for higher production. Good for the US and "good" for foreign consumers, not necessarily "good" for foreign Staes/industry. Its a complex topic obviously and assigning "good/bad" labels is a bit shallow, if you follow me.
Germany and China have very very high exports to GDP ratios. Imho they should increase internal consumption to buffer future global downturns from having major negative impacts to their economies. However, in times such as now, high exports increase wealth more rapidly, soo it is again a mixed bag.
Those are my opinions and open to debate
> Your country economy depends on exports
Americans, please kill German .and Korea too
>Can someone explain why the dollar has been in freefall since Trump?
Because its a fiat currency that has existed 40+ years, well beyond the average lifespan of fiat currencies that always inevitably fail. Always
Fiat
Always
Always
Always
Always
Fails
ALWAYS FAILS
He is starting to get pissed, isn't he? Xi, I mean.
isn't the euro to usd thing because investors are betting that the european central bank will be unwinding its bond buying program soon?
The leaders are moving the HQ to china for the last push because they cant move foward in the USA now.
SINK THE CHINKS !
Government shut downs make consumers and producers uncomfortable and lowers the dollar.
That is actually a good thing as Democrats continue to shoot the economy the more issues they will have when they get power again. Usually Democrats fuck the economy, then a republican fixes it, then a Democrat takes the credit and fucks the economy. Now a Democrat has fucked the economy and the Democrats are keeping the republican from fixing it.
appreciated, I agree with pretty much everything you said regarding your economy.
Germany has a very hard time ahead if it doesn't adjust. EU should act as a fiscal union in which stronger countries give back to weaker countries which can't devaluate.
Do you think another war is coming for the US?
t would artificially devaluate the dollar wouldn't it?
>are betting that the european central bank will be unwinding its bond buying program soon?
The ECB cannot stop buying those bonds - it would essentially bankrupt Italy.
Trump made his fortune and you're delusional if you think otherwise.
It's just the manner in which he built that fortune, being great at giving handies to corrupt state and local government, isn't exactly what he ghost writes in his books about.
Since this is a pretty good discussion thread actually, can I get a quick rundown on qualitative easing? And what does it have to do with a weakening dollar and inflation? Even a good link would be appreciated. Thx in adv, based econfags
Overseas market for US government debt is drying up so less inflation can be exported
Eurozone = redistribution of wealth from ordinary Germans to big German exporters & Mediterranean governments
Not good for us
Germany is exporting more than importing
Labor Treasury Certificates when?
Everything is happening at once.
NK peace
Palestine peace
Israel exposed
Mass arrests
Swamp drain
Trump is crashing this plane with no (((survivors)))
For all the ignorant faggots in here Mnuchin has been intentionally weakening the dollar to attract foreign investment
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Now can you /po/tards please do 30 seconds of research instead of being so high minded you give opinions on things you know nothing about
didn't notice the one burger who actually knew how this worked
Since everyone ignored your post can you dumb fucks please come see mine?
So what you’re telling me is that not only will our currency be weaker, but now all of the inflation we’ve been exporting for years is going to come back to us in the form of “investments”.
Why the fuck should foreign investors give a shit about America’s crumbling infrastructure?
I'm not saying it's a good or bad idea, I'm just telling you the motive.
Tbh though if you want to attract foreign investment by lowering the cost of doing business, just lower taxes. See
All of those top countries have amazing tax environments, including my own
>just lower taxes.
Tell that to our overinflated military / social security system. Personally until we get our shit together I don’t blame other countries for not investing in us. We are shameless consumers and our ticket is almost up.
Btw I'm an American but I moved overseas and I don't intend on ever moving back, will probably renounce citizenship
Singapore is my next stop