It's not going to happen
The Democratic debates start tonight as the painfully-long US election gets moving. One topic that Trump brought up today and that will undoubtedly be a hot-topic in the election is the US dollar.
Everyone suddenly wants a weaker currency and all the candidates are promising action.
That includes Elizabeth Warren who has this to say on her platform:
- More actively managing our currency value to promote exports and domestic manufacturing.One of the most important factors in our trade deficit and our weak export levels is the value of our currency.Other countries have actively managed the value of their currency to boost exports and develop their domestic industries. And foreign investors and central banks have driven up the value of our currency for their own benefit. We should consider a number of tools and work with other countries harmed by currency misalignment to produce a currency value that's better for our workers and our industries.
It won't happen. It will never happen. Currency action is something that gets promised over and over and never even comes close to happening.
Trump promised to label China a currency manipulator on his first day in office. Senator Obama made the same promise and even supported legislation on it before he became President. Mitt Romney ran on it. George W Bush did nothing when China was massively manipulating its currency.
No one in the US administration even raised a question about the Swiss actively and openly manipulating the franc for years.
Ultimately, there will be plenty of writing and talking and promising around the US dollar but nothing is going to change.
