Posted September 02, 2024
By Matt Insley
A Weak(er) Dollar… What it Means to You
Happy Labor Day! Since markets are closed today, we thought it would be the perfect time to dive into some insightful feedback from our readers — and we've got some passionate contributors weighing in!
“Thank you for your excellent response to the current frustration that’s divided our nation,” Wayne S. opens. .
“I agree with everything in your post,” Phill J. notes. “How did Americans get here? Lots of answers to the question. But there seems to be no solution to the problem.”
And Victor M.’s fatigue is palpable (and relatable): “I am a moderate registered Democrat. I have voted in every election for the last 40 years. But I am done. Both sides stink.
“We need radical change: no more spending into a deficit, a plan to pay down the debt, less government regulations, etc.
“I don't believe these are ‘radical’ ideas. But based on the last 50 years of public policy, they unfortunately would be considered radical.”
David M. chastises: “All I have heard from the right is how Harris' policies won't work, yet no one is giving an alternative to those policies.”
Currently, Harris’ policy positions are something of a black box. (Presumably, that’ll change. And when it does, we’ll let you know.)
Here’s one policy position from Harris’ opponent: Trump tackling bureaucratic overreach.
“Thank you and Jim for putting the Chevron decision into layman’s terms. I knew it was good for the U.S., but now I understand why,” says Gary R.
To wit, Raymond B. suggests: “To really start draining the swamp, on day one, Trump needs to do what Jim Rickards has suggested — fire everyone in the Plum Book and start anew.”
Many readers, incidentally, were fired up about our top-ten list of ways a second Trump term might supercharge the economy…
Send your opinions to, feedback@newsyoucanacton.com
Your Rundown for Monday, September 2, 2024...
The Dollar Dilemma
Craig P. had high praise for our analysis: “That is a PHENOMENAL overview. I totally agree with EVERYTHING you said. This should resonate with the American people!”
Steve S. adds: “This is great for people like me who own PLTR stock” — which aligns with our mention that defense stocks could see a major boost from Trump’s return to the White House.
But David W. pumped the brakes on infrastructure aspirations: “Trump had four years to do infrastructure. 'Infrastructure month' was a bad joke for four years while he was president.
“Why would you assume Trump would do any better the second time around?” he asks.
Fair point. But there’s a case to be made that Trump has unfinished business and would be laser-focused on getting the job done this time.
Since we’re on the topic of improving infrastructure, Dr. James P. makes an excellent point:
“Nuclear power! With a maxed-out electrical grid, it isn't possible to build out infrastructure without access to large quantities of reliable energy.”
Finally, we received additional pushback to the idea that Trump's policies could lead to a weaker dollar.
George C. comments: “I DON'T UNDERSTAND HOW A THRIVING COUNTRY MAKES FOR A WEAKER DOLLAR.”
Terri M. expands on this idea, saying: “We will not have a weaker dollar because of Trump. We HAVE a weaker dollar NOW under Biden and Harris. Having a strong economy does not weaken our dollar. It strengthens it.”
These are great points. It's a complex issue…
While a booming economy often strengthens a currency, there are scenarios where pro-growth policies can lead to a relatively weaker dollar.
Here's why that's not necessarily a bad thing:
- Boost exports: A slightly weaker dollar makes American goods more competitive globally, potentially increasing exports and creating jobs
- Attract foreign investment: If the U.S. economy is growing faster than other major economies, it can still attract foreign capital despite a weaker dollar
- Fight inflation: Moderate dollar weakness can help combat deflationary pressures
- Alleviate debt: It eases the burden of dollar-denominated debt for both the government and corporations.
Not to mention, the relationship between a weaker dollar and the price of gold (i.e. gold thrives)!
The key, of course, is balance…
We're not talking about drastic devaluation. Instead, a strategic approach that prioritizes economic growth and American competitiveness.
As we close our issue today, some readers express frustration with the current political landscape and call for radical change, others debate specific policy implications, ranging from infrastructure to the strength of the U.S. dollar.
To keep the conversation going, in your opinion, what does America look like if Trump wins? Share your thoughts on the changes, improvements and differences you anticipate, as well as what you're most (or least) looking forward to in a second Trump term.
We want to hear from you, reader. Share your feedback right here.