A second Donald Trump administration could unilaterally devalue the US dollar, the de facto reserve currency used across much of the world as a lynchpin in the global financial system.
According to Politico, Mr Trump’s crop of economic advisers is “actively debating” how to devalue the dollar to bolster American exports, even at at the expense of the dollar’s status as a reserve currency and despite the risk that a devalued dollar could pour gasoline on inflationary fires that President Joe Biden has been trying to quell during his term in the White House.
One source told Politico that “currency revaluation” would “likely be a priority” for some of Mr Trump’s top aides if he and they are returned to the White House after this year’s presidential election.
But at the same time, that boost to exports could come at the expense of the domestic economy by sending inflation rising while potentially having global effects by inviting retaliatory devaluations by aggrieved US trade partners.
Devaluation could also be a relief to many of the authoritarian leaders and regimes Mr Trump professes to admire, as it would threaten the dollar’s reserve currency status and make it much harder for the US to use economic sanctions on countries such as Iran, Russia and China.
“Lighthizer brought that up all the time because he felt like tariffs weren’t enough to achieve the objective” of rebalancing trade with the rest of the world,” said the official, who added that then-Treasury Secretary Steven Mnuchin refused to consider it.
The original article contains 396 words, the summary contains 253 words. Saved 36%. I’m a bot and I’m open source!
This is the best summary I could come up with:
A second Donald Trump administration could unilaterally devalue the US dollar, the de facto reserve currency used across much of the world as a lynchpin in the global financial system.
According to Politico, Mr Trump’s crop of economic advisers is “actively debating” how to devalue the dollar to bolster American exports, even at at the expense of the dollar’s status as a reserve currency and despite the risk that a devalued dollar could pour gasoline on inflationary fires that President Joe Biden has been trying to quell during his term in the White House.
One source told Politico that “currency revaluation” would “likely be a priority” for some of Mr Trump’s top aides if he and they are returned to the White House after this year’s presidential election.
But at the same time, that boost to exports could come at the expense of the domestic economy by sending inflation rising while potentially having global effects by inviting retaliatory devaluations by aggrieved US trade partners.
Devaluation could also be a relief to many of the authoritarian leaders and regimes Mr Trump professes to admire, as it would threaten the dollar’s reserve currency status and make it much harder for the US to use economic sanctions on countries such as Iran, Russia and China.
“Lighthizer brought that up all the time because he felt like tariffs weren’t enough to achieve the objective” of rebalancing trade with the rest of the world,” said the official, who added that then-Treasury Secretary Steven Mnuchin refused to consider it.
The original article contains 396 words, the summary contains 253 words. Saved 36%. I’m a bot and I’m open source!
Good bot, here’s a Scooby Snack. 🦴