Wow, Trump Didn't Know That the Dollar Floats

Mish

A clueless Trump asked his aides to weaken the dollar.

Trump Rebuffed on Currency Request 

Please note Trump Says Aides Rejected his Request to Adjust the Value of Dollar.

Trump told thousands of supporters at a political rally in Dayton, Ohio, that his policies were saving jobs in the political battleground state after years of inaction to confront China’s aggressive behavior in global markets.

“I go to my guys, ‘What about doing a little movement on the dollar?’” he said, but they countered that was not possible. “‘Sir, we can’t do that. It has to float naturally.’”

The self-proclaimed international trade master not only does not know how most currencies work, he was dumb enough to let the world know.

Wow.

Trump or an aide is likely to claim that he was making some sort of political statement and that he understands currencies. If he counters, you get to decide if you want to believe him.

Regardless, he looks more than a bit foolish for the way he revealed his ridiculous request.

Mish

Comments (43)
No. 1-23
FactsonJoe
FactsonJoe

Several countries intentionally lower the value of their currencies to keep exports flowing and protect their internal markets from imports.

One of them is China:

The Chinese authorities have acknowledged that they have ample control over the RMB exchange rate. In a statement today, the People’s Bank of China (PBOC) noted that it “has accumulated rich experience and policy tools, and will continue to innovate and enrich the control toolbox, and take necessary and targeted measures against the positive feedback behavior that may occur in the foreign exchange market.” This is an open acknowledgement by the PBOC that it has extensive experience manipulating its currency and remains prepared to do so on an ongoing basis.

Runner Dan
Runner Dan

"Regardless, he looks more than a bit foolish for the way he revealed his ridiculous request."

Agreed. Sadly, he just looks foolish to the very small sliver of people who actually care about and attempt to understand how money is made.

"I'm trying to help you guys by lowering the purchasing power of your paychecks!" Idiot!!!

For what its worth (which is not much, but something) at least he is honest about his thievery.

Tengen
Tengen

Trump does seem to have a robust understanding of debt, at least pertaining to the individual or corporate level.

Any other aspect of money, not so much. He does love ZIRP, which either makes him malicious or totally uncaring about the future beyond his lifetime.

Webej
Webej

That's why I always say: Put together a couple of bright inquisitive high school students and you will have a much better brain trust than the average President.

Augustthegreat
Augustthegreat

"The president said it with tongue in cheek", the White House press secretary said.

Zardoz
Zardoz

Everyone who isn’t an idiot already knows trump is an idiot. What has he got to lose?

Realist
Realist

When you are so stupid to actually think you are the smartest guy in the room, you end up saying and doing a lot of very stupid things.

Some Trump classics I recall:

Nobody knew health care would be so complicated!

Can’t we just nuke the hurricane?

A friend of mine said to me; Who knew there were so many countries?

Can’t we just inject the bleach and do a cleaning inside the lungs? Or use the UV light on the insides to kill the virus? Can we look into that?

Trump on national tv proudly claiming how he ”aced” a cognitive test as if it was a test on intelligence! In reality it is a test that is designed to be so simple, that only those with serious cognitive impairment (think alzheimers) would have difficulty.

Using a sharpie to re-draw a hurricane track to prove it was heading where he said.

Suggesting that countries like Finland rake their forests. And the US should as well.

He openly admitted that he thought Finland was part of Russia.

He said that Belgium was a beautiful city.

When meeting with leaders of the Baltic nations, he introduced them as from the Balkans.

When discussing building the wall on the Mexican border, he talked about the section bordering Colorado!

Recently, Trump claimed we would be done with the virus once we achieve herd mentality!

I could go on as there are so many more, but you get the picture. Is it any wonder why so many people outside of the US think he is a clown.

Felix_Mish
Felix_Mish

For those who roll their eyes whenever "quotes" are published by the other side of whomever is "quoted", you can hear the context and delivery at:

Go to 40:40 and watch the Rorschach president.

Casual_Observer
Casual_Observer

This isn't 2016.

Sechel
Sechel

More proof that Trump went to Wharton and took economics and business classes?
Could almost justify this by acknowledging the Fed and treasury do target exchange rates trying to drive own and up the dollar but Trump took it too far.

Rocky Raccoon
Rocky Raccoon

Ah Trump the self-righteous ChiCom warrior! Fascinating that when he and his daughter could have put America first and built US factories and hired Americans to manufacture their Trump branded clothing line, they put China first.

Now to add insult to injury he continues to pursue policies that hurt self-responsible Americans who save their money and are ready for a rainy day and retirement.

Mitchell Bupp
Mitchell Bupp

I don't think it floats ... it seems every currency is a depreciating somewhat in parallel. It is a sinking dollar not floating creating additional money spread in the dollar Ponzi?

Nux in Valhalla
Nux in Valhalla

Mish - I've checked in on you since 2008. You are gonzo. Not sure what happened to you. I loved your contrarian takes and actually found info I could make money on. Now all you do is fight shadows trying to disprove Trump narratives I guess? How is that helpful? Everyone knows what Trump is. Signing off for good and deleting your bookmark. Good luck. Hopefully you find yourself again.

amigator
amigator

Great Point. I think we should give a test to all prospective politicians. And I think to vote we should have to pass the same test!

Eddie_T
Eddie_T

The comments are certainly split along party lines this morning.

My guess is that Trump does know the dollar floats.....but that he believes the Masters of the Universe at the Federal Reserve have the tools in their toolbox to nudge it in any direction they'd like it to go. They might have had, at one time, but I think it's getting harder.

The truth as I see it......is that the banksters have been trying like hell to weaken the dollar since 2015.....and it just keeps going up to spite them. The recent flagrant money-printing is the first thing I've seen that even came close to changing that.

Anybody subscribe to the Dollar Milkshake Theory?

PawnInTheGame
PawnInTheGame

MarketWatch article: "Currency intervention: Here’s how the U.S. could move to weaken the dollar"

McPhone
McPhone

And yet voters’ support for him goes down by zero. Speaks to the quality of education in this country.

Casual_Observer2020
Casual_Observer2020

Trump just gave the Dems a huge win. The SC nomination will be approved before January and allow some Republicans to vote for Biden even though they may be conservatives. The SC is no longer a tool to win elections for the foreseeable future. In fact it may allow independents and Republicans to remove their senator as well knowing that the court will be conservative for at least another 4 years.

KidHorn
KidHorn

What? Are you saying only pegged currencies can be devalued? Floating currencies can be devalued just like fixed currencies.

Kevin78
Kevin78

Trump should be taken seriously but not literally.

Six000mileyear
Six000mileyear

Everyone can't have a weak /strong currency simultaneously.

Trey LePark
Trey LePark

Just have the Fed print a few trillion more.

Lamarth
Lamarth

I'm sorry Mish, but TDS has turned your brain to mush.
With the same logic and evidence, Abe didn't know the Yen floats:

Juncker and the media didn't know the Euro floats:

The Sydney Morning Herald doesn't know the Aussie dollar floats:

You're now like a trained dog, snarling every time the name Trump appears. You used to have a decent grip on the situation back in the GFC, but now... your reporting is negatively correlated with reality. In truth it's been negatively correlated since your last 5 failed recession calls. I can't take even the email summaries any more.


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