Monday, May 22, 2017


"If the president is the standard bearer for the currency, Donald Trump himself will have to stop being a negative in order to get the dollar back on its feet.

Boosted by the Trump trade, the dollar had soared after his election on the prospect that lower taxes, fiscal stimulus, and deregulation would boost the U.S. economy. But that trade has reversed, and the dollar index is now down 6.6 percent from its post-election high and down 0.9 percent since the election.

"The Trump premium in the dollar has become a Trump discount. Global capital just doesn't feel safe coming to the U.S.," said Robert Sinche, chief global strategist at Amherst Pierpont. " 

These people are getting on my last nerve. Even though the dollar has gone down recently (by three whole effing cents!) it is still stronger than it's been since 2004!  Here.

These people don't even effing understand how the dollar works. The dollar got stronger and stronger from about 2010 on. They didn't even get the connection between the dollar and why oil was caving. Completely missed it! Under Obama the dollar got stronger by 20 cents! And what happened? Oil fell like a house of cards. I started blogging it around the summer of 2014. But here is a post from fall of 2014.

Now the dollar has to get back on it's feet? Eye roll. If the dollar were to continue going up we would get more deflationary pressure because oil is in traded in dollars. That means other countries have to use more of their resources to buy oil. Which means they don't buy as much other stuff. At one point I actually worried it could get as strong as it was in the 1980's where it stood at 128. Or even the year 2000 where it stood at 113. It's merely at 100 right now. After topping at 103 in December.

These people can all pound sand. They are just writing to hear themselves talk. It the stupidest article I've ever read. Now the dollar does start to get a little toppy before we enter a recession. Which I think is happening, but you can't tell that from a 2 cent decrease. I tell that from loan origination.

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