Trump’s Threat to the Dollar

Aside from the Nobel Peace Prize, if there is one thing that Donald Trump has consistently wanted, it has been a weak dollar. In his view, a weak dollar is essential to boost exports, increase manufacturing output and employment, and reduce the trade deficit. In wishing for a weak dollar, Trump should be careful about that for what he wishes.

The economic policy and geopolitical course on which he is embarked is all too likely to produce an excessively weak dollar. In turn, that risks fueling inflation and inviting a full-blown US bond market crisis. Such a crisis could be the trigger that bursts the Artificial Intelligence-driven stock market bubble.

Last year was not a good year for the dollar. Indeed, the dollar fell by close to 10 percent, representing one of its worst performances sin