The Trumpster stated he wants a cheaper U.S. dollar.  Why? We haven’t a clue.  For a successful businessman, you would think he would realize a cheaper currency is a slow trip to the poor house.  Clearly he does not understand that a higher dollar can buy more goods outside of his borders.  There has not been one economy that has experienced benefits from a falling currency.  It does exactly the opposite. 

During the nineties America was “Great”.  They even balanced the Federal budget and some years had a surplus.  2002 to 2007 belonged to Canada.  The rising Loonie created surplus budgets and positive trade numbers.  Australia has been a top performing economy for the past 26 years.  And, while their dollar slowly moved higher over this period, they have not experienced one recession.  New Zealand’s booming economy also continues to grow as their dollar has soared against most currencies. 

New Zealand today is the biggest supplier of dairy products to many Asian countries, especially China.  Yet, their dollar has soared.  New Zealand is producing top quality, safe dairy products which the world demands.  This is the priority, not what a currency is worth.  In the future another Asian country will figure out how to equal or better New Zealand production and shipping.  As the economy changes businesses must adapt or disappear.  This is how the world works.

If Mr. Trump gets his way the cheaper dollar will cost millions of jobs and their negative trade and budget numbers will get worse.  As it is today, both deficits are out-of-control.

Mr Trump knows nothing about basic economics.  He figures foreigners will beat a path to buy American goods.  They will not.  First, they make very little that the world demands. Secondly, Asian countries will just lower prices to equal or better American costs.  It must be remembered that today’s economy is based on the computer and knowledge.  The only thing a cheaper currency might have an effect on is  food, oil and some metals.  

Mr. Trump does not realize nothing needs to be done on the job front.  Currently at 4.6%, the unemployment rate is actually full employment.  Many of the 4.6% do not have the necessary skills for what the world demands.  Some people have physical problems and some cannot afford to move where a job might be.

The main problem Mr. Trump has is their negative trade figures and the ever growing government debt, now at $20t.  Forcing a ‘made in America’ policy will not work because they make very little what the world demands.  What they do make foreigners will simply match prices. So, who will America sell to?

Ripping up Free Trade deals is destructive mostly to America.  Sure, some changes must be made due to the growth of technology, new products being developed and so on.  But, these must be ongoing discussions at the trade table.  By cancelling existing agreements Mr. Trump is telling the world do not trust America nor himself.  Not to mention, he is opening up America to retaliatory tariffs on what little the U.S. does produce.

America is not a place to invest in today.  Foreign countries will just shift their trade to other willing countries.  This makes America the loser.   Plus, a real danger is that if America runs rough-sawed over his trading partners many will not forget.  In the future they might try to get even.  Then America will be the sole loser.