https://x.com/amitisinvesting/status/1896658819608203658
Is this a twisted reasoning or true?
What I learn from Econ 101 is:
Net export (export > import) nations should keep currency weak.
Net import (import > export) nations should keep currency strong.
For example, Singapore is a net import nation, so keep S$ strong to avoid imported inflation.
Is USA a net import or net export nation?
Regardless of whether you want a strong currency or a weak currency, governments actually have very limited tools to manipulate currencies.
That is, if the said country doesn’t have capital control. In a country with free capital flow like the US, currency is determined mainly by strength of the economy and interests rate.
Think of currency as an artificial token used in Disneyland or something. If you want to take rides you need to pay with Disney tokens. If the theme park is popular people will want those tokens.
So if American economy is strong foreigners will want to invest in America. And to do that they need USD. Strong economy => strong USD, all else equal.
Another factor is interests rate. If US rate is high foreigners will want USD to earn that yield.
If Trump wants a weaker USD he can do that by tanking the US economy. Fewer foreigners will want to invest in the US and Fed will be forced to cut rates. Achieving both in one swoop.
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Repeating what media said? Truth or just a narrative?
Actually never saw any media articulated it like that.
I don’t know why you are so against media. At least they fact check their stuff. I’d put more weight on it than some randos on Twitter. There is a difference between opinion pieces and news articles. The former is, yeah, just some dude’s opinions. The latter has facts in them, that you can verify yourself if you don’t trust it.
What I wrote is mostly logic and common sense. You can argue against it with your own logic.
Current narrative is the goal of the tariff is to create uncertainty to bring down the stock market and economy. That is what you’re saying…
So,
Your response implied that you opined is truth.
And your response implied Trump’s reasoning is twisted.
Nope. Bringing down the economy is not what I think Trump wants. It is what his policies do.
Trump is simply a moron surrounded by sycophants. He truly thinks tariffs will strengthen the economy. You can go on Twitter to read the twisted reasoning of his cult. They truly believe in this garbage, stupid as it is.
By posting below tweet,
Are you agreeing that the narrative below is true?
And not a…
I don’t know I’m posting here for experts like you to comment and to learn
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Funny, I doing likewise 