Thursday, January 19, 2017

My Absolute Biggest Fear About Donald Trump: He Does Not Understand Or Appreciate The Merits Of A Strong Dollar

 Nor does Trump comprehend the advantages (to non-Chinese) of a weakened (or if you prefer, manipulated) Yuan.

Why is it that smart people just can't absorb a simple principle that really is simple? Yes, sometimes the intent to deceive the public enters the picture. Short-term stimulation and a debt-payback method that won't be fully appreciated until the mountebank leaves office. I don't think of Trump as one of those people.

Hey Larry Kudlow! You have Trump's ear, don't you? Can you sell him on the merits of King Dollar?

What do Richard Nixon, Jimmy Carter and George Bush II have in common? They all presided over a declining and declined dollar. Is anyone nostalgic for those jerks?

From John Tamny, writing in Forbes:

Trump and his protectionist friends love labor-intensive industry, they in particular get frisky when the labor is based in the United States, but last this writer checked these workers earn dollars in return for their toil. And if Trump is to be believed, these dollar-earning everymen were his base of support in the most recent election.  Do these average people realize that Trump wants to devalue the dollars they work for each day? Where’s the media coverage of this? Trump, the alleged populist, is out to devalue the dollars earned by common people who frequently lack the hedging knowledge to mitigate government’s theft of their earnings.  Some would call it a scandal.

Read the entire Tamny article:



Also, read this warning from Tamny excerpted below.

With their Party having won control of all three branches of the federal government in the recent election, Republican tax experts are seemingly desperate to help the GOP give back its gains.  Evidence supporting this claim is the growing support among Republican tax scholars (and apparently legislators too) in favor of what they describe as a “border adjustable tax system.” They don’t call the Republican Party the “stupid party” for nothing.

The new revenue stream popular among certain members of the Republican commentariat calls for reducing the corporate tax in favor of a tax placed on goods made outside the United States, but that are exported to the U.S.  The argument is rooted in numerous falsehoods, fallacies, and plain bad economics.

Advocates lament the fact that almost all countries tax U.S. produced goods that are exported to foreign countries.  The argument, if readers can stop laughing (or crying), is that since other countries injure their citizens by virtue of taxing imports, so should the U.S. injure its own.





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