The time is fast approaching when President Donald Trump will ask the Federal Reserve to devalue the dollar. Hints and statements regarding the dollar being overvalued have been tossed around a few times since the new administration took office. The foreshadowing which is taking place will lead to the eventual implementation of a lower dollar policy.
The benefits of such a policy will be broad and will complement both domestic and international mandates which are developing.
Domestically a lower dollar will improve American exports as US made goods become more affordable to other nations which wish to import them. This means more manufacturing in country and more jobs to meet those growing demands. Companies which once moved overseas will look at coming back and setting up shop.
Another added benefit would be the increase in GDP which will lower the debt-to-GDP ratio. This is important because under the current system of money creation debt management is the name of the game. At the end of WW2 America had a debt-to-GDP ratio of 140% which is still far from where it is today. Increasing GDP now will lower this ratio and make debt management more functional.
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