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Investors Losing Faith in Trump?
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  • D4x

    How is the state of emergency in the NYC subway system going? The clock is ticking.

  • DiogenesDespairs

    The problem here is that the grassroots rebellion in the GOP is still far from completing its necessary work. It nominated Trump and denied the GOP establishment (as well as Hillary Clinton) control of the White House, but the GOP establishment still controls their delegations in Congress and much of the party apparatus.

    The grassroots must not stop now and rest on their laurels; there is too much to be done. Dear reader, if you care about your country, make it your business to do all you can next year to replace RINOs with Constitutionalists in the GOP primaries and caucuses, and then replace Democrats with Republicans in November. It is necessary to complete the GOP revolution if we are ever going to drain the Swamp.

  • Please correct me if I am mistaken, but I believe a weaker dollar is both necessary and sufficient to increase exports relative to imports and thus to increase manufacturing employment in the US, A weaker dollar is for the same reason required to reverse our balance of trade and thus to start paying down our foreign indebtedness rather than consuming more than we produce on an annual basis.

  • Unelected Leader

    Oh here we go. I’m an investor, and a young one who is doing well. I’m heavily invested right here, in America, so I’m very excited about the prospect of tax cuts as well as a cheaper dollar. Although it could lose quite a lot of value and still be misaligned to many currencies. The dollar has been rising for years, and that’s not a great thing for most Americans. It’s especially troublesome that it’s in large part by design, as foreign competitors with whom we have a trade deficit use some of that money to buy dollars and dollar-denominated assets to artificially push up its value making us less competitive.

    Investors wanting the dollar to keep soaring ever higher are not interested in US jobs and US growth. They are managers of and/or heavily invested in international funds. They are no more American than the Chinese guys buying the $500,000 investors visa that Jared Kushner’s sister was out peddling. And the slew of laughable headlines coming out of CNBC the past couple of weeks, in particular, really drive the point home. They are as much fake news and disinterested in American well-being as are CNN, NBC and the rest.

    • KremlinKryptonite

      Ha! Did you see that junk repost that they had? It was on CNBC but it was a re-post by that loony Vox guy Zeeshan Aleem. Man that was funny. That guy doesn’t know economics any better than he knows his you know what from his elbow. Really tells you all you need to know about CNBC that they’re willing to repost a Vox article, and from someone with so little understanding no less.

      • Unelected Leader

        Yes I did manage to see that. But that’s not the only one. Of course there was a hedge fund manager who probably made $1 million last month in Timbuktu talking about how horrible it is that Trump is selling some weapons to Taiwan which we are basically obliged to do by the Taiwan relations act, and that we’ve sailed a ship near the fake islands in the SCS again. That guy doesn’t give a hoot about the American interest or obligations, not so long as he has some more incremental access to China and can go drinking with Xi Jinping someday.

        • KremlinKryptonite

          I have a very good friend here, he is the typical sort of Korean or Japanese “salary man,” and he asked me why Trump called into question the Korea-US FTA. I tried to be very nice about it, but frankly I thought the man would know more. The answer is pretty straightforward. It cost the US about 100,000 jobs in five years, and Korea makes it very difficult for US auto manufacturers and many others to operate here, where as it’s very easy for Korean manufactures to operate and sell in the US. It’s actually a fantastic example of the “bad deals” Trump rails against.

          • Unelected Leader

            You know you just nearly killed me. Drinking coffee and your comment made me remember Obama’s lies from a few years ago on KORUS. Went down the wrong pipe. Remember when he said that it would increase US exports by 10 or $11 billion and support 70,000 jobs on the nonsense White House “fact sheet” aka lie sheet? It’s really not funny of course because these are real people’s lives being damaged, but just the stuff that came out of that guy’s mouth. Lord have mercy.

            Of course anybody can look at the balance of trade and see exactly what happened, US exports stagnant for the first four whole years while imports rapidly grew, and of course the trade deficit rapidly grew. Even in 2016 the deficit is back down by a couple hundred million to 27.5 billion (slow clap for Obama?), with imports still far outpacing exports. I think 100,000 jobs lost might be a little bit low.

          • KremlinKryptonite

            Sorry about that! You want another great laugh? Remember when Obama planned he would double US exports between 2009 and 2014? The more I think about it the more that I believe the guy probably continue to use narcotics well after the college days.

          • Unelected Leader

            Oh I remember it indeed. The acid was dropped that day. The worst part is how disingenuous it is though. Doesn’t matter if exports double if imports also double. The situation is the same. Its the difference between a guy making $100k who’s in debt $200k vs. the guy making $1mil who’s in debt $2mil. But of course his supposed goal didn’t happen anyway.

  • Angel Martin

    The dollar index (trade weighted US dollar exchange rate) has not moved significantly since 2014-15 when it increased by twenty five percent

    http://www.marketwatch.com/investing/index/dxy

  • Jacksonian_Libertarian

    • Foreign manipulation of the Dollar has kept it over-valued for over 40 years.
    • A reversal of America’s trade deficit to a surplus, would add 2 points to America’s annual growth rate.
    • “Compounding Growth” is the greatest force in the Universe.
    • America could devalue the Dollar with the push of a button, by having the Fed pay-off the $6+ Trillion in US Treasuries that foreign nations have accumulated in their unjust currency manipulation, to gain a price advantage for their exporters.
    • America would experience a massive “BOOM” if this was done.
    • Just imagine $6+ Trillion burning a hole in foreigner’s pockets.
    • A “BOOMING” America would vacuum up foreign direct investment like no nation has ever experienced.
    • Thousands of new state of the art factories would provide rising wage jobs by the millions.
    • The Fed would then have ~$9 Trillion in reserves ($6T + $3T already in reserve) that should be used to create Individual, Tradable, Inherited Social Security Accounts, for all naturally born American Citizens (legal immigrants should be required to fund their own accounts).
    • This would add $9 Trillion in capital to America’s Capital Markets (investment bankers would orgasm).

    • Angel Martin

      One issue for the valuation of the US dollar is that there is now $10 trillion in eurodollar loans. That is, there is $10 trillion in US dollar loans made by nonUSA lenders to nonUSA borrowers outside the United States. That’s as big as the entire asset base of the US domestic banking system.

      As a result, there is a huge demand for dollars that is independent of trade flows. Most of those loans are structured to borrow short to lend long, and collect the spread. So there is nearly 10 trillion in short term loans that have to be constantly refinanced. And those amounts just dwarf the annual USA trade numbers of $2.2 trillion exports and 2.7 imports.

      There are advantages to the US dollar being the world funding currency. But there are some downsides too.

      Frankly, I think the trade issues should be taken head on like Trump talked about during the campaign (and may be happening still).

      This is typical. It’s not a currency issue. It is a flat out unfair trade deal ripoff. And Trump should stomp on their … ahem, …fingers until they stop.
      https://www.nytimes.com/2017/03/20/business/economy/china-us-trade-tariffs.html

  • FriendlyGoat

    This is simple stuff. First you actually implement in real time (in real time) all the budget cutting Trump has proposed. THEN you do the GOP tax-cut “vision” using the money suddenly saved by the budget cutting. It’s the political cake-walk of the century,

  • Jacksonian_Libertarian

    I think the 1,200 seats lost by the Democrats in 6 years, are more of a problem for the Democrats. The Republican problems are of the good kind, problems of abundance, anything they do will damage the leftist policies now in place, and therefore result in economic advantages. Cut redistribution, cut regulations, cut immigration, cut government work force, cut trade deficit, cut opportunities for voter fraud, cut funding for leftist political organizing, smaller Government would enable greater growth, and “Compounding Growth” is the Greatest Force in the Universe.

    Normally the midterm election of a first term President is bad for his party. But, in 2016 only 30 of the house seats were won by less than 10 points. This means there are very few competitive seats. Also, the Democrats are behaving hysterically at their rejection over the last 6 years, and unworthy of anyone’s vote. The Russian Nothing Burger, the Impeachment impossibility, losers 5-0 in special elections, the violent Left beating and murdering the Right, freedom of speech for only leftists, California to succeed, sanctuary cities, etc… They just aren’t enjoying living under the rules they created.

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