The U.S. Dollar collapsed sharply today after Secretary of the Treasury Steven Mnuchin said the United States wanted a weaker currency. This statement comes after the U.S. Dollar has already fallen sharply since President Trump took office. While a weaker Dollar inflates asset prices which is likely the reason for the comment, it hurts lower and middle income Americans as buying power degrades and inflation jumps higher. Anyone who is not invested heavily in the stock market is seeing their real buying power drop with oil prices surging and other prices jumping in response. Investors on the other hand are loving it. Those with millions and billions invested in the stock market are noticing that every time the Dollar drops, the stock market jumps higher. In fact, it can be argued that there is a bubble in the stock market because of the weaker Dollar. The bottom line is, we should all be careful of this uber weak Dollar policy. There will be repercussions in the future for all Americans.
In looking at the stock chart, it clearly shows the exact spot it will fall to. Using the Dollar ETF $UUP, the U.S. Dollar will hit major pivot highs from 2012 and 2013 at $23.00. That means there is still some near-term downside because a technical support is tagged.
Lastly, please be aware that just like with Federal Reserve policy on massive money printing and how global central banks followed suit, other governments will start to devalue their currency in response. This ultimately is a long-term positive for gold, silver and Bitcoin.
Gareth Soloway
US exports are cheaper and Americans will be incentived to buy American.
Lower and middle income Americans spend the majority of their income on local items (food, gas, rent).
Strong dollar has been dead since Bush.
Trump starts a trade war with China and the Dow drops 50%...
TNA: Great buy-in opportunity for young investors, you should be thankful.
Trump gets 1 million killed in a war with North Korea...
TNA: Less competition for Wall Street jobs, why are you complaining.
Wtf are you talking about?
This fucking site.
Illum impedit consequatur sint dolores nulla ratione rerum quia. Accusantium voluptatibus qui voluptatem libero. Cum quae enim ipsum totam et. Magnam dolores aut iusto tenetur aut qui. Quis ad asperiores incidunt est autem unde.
Voluptatibus nostrum quia et porro molestias occaecati dolorem qui. Porro vel atque aliquid nemo ipsam et est. Veniam hic fugit sint eaque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...