US Dollar Weakness A 'Symptom Not Cause,' Argues Expert As Economist Hails Devaluation To 'Restore Global Growth

I was recently quoted in Benzinga on the US economy. While I appreciate their quote and editorial freedom , I also want to present the entire contextual text such that we add clarity.

Here it is :

US Dollar FX rate decline is a symptom and not a cause. Also, in the recent past, the USD has had a run-up against all major currencies and thus could also be a correction. President Trump is conducting a complete review of public finance in the US, a hard task. Cleaning up USAID and the Department of Government Efficiency are steps in that process. Cleaning up Public finances, when growth is not commensurate, is a long time arduous task. The ISM Purchasing Managers Index is close to contraction, with New Orders falling from 55.1 to 48.6. The focus of the Trump administration is to stimulate American manufacturing for many products, small and big. This is also an acknowledgement that the US is the biggest user of money, around $34 trillion of National Debt, which is both Internal and External, and that the public finances are delicate. The delicate state of finances , is also partly because of its geopolitical status, state ambitions and superpower status, besides being a reserve currency and a freely convertible currency. The US is the largest debtor in the world. A lot of old infrastructure needs relaying and renovation, which the President has mentioned before.

The issue for President Trump is not just Make America Great Again, but also Make America a Nation again. MAGA+MANA = MAGNA. Thus, it is not surprising that the USD can come under pressure at various points in time.

Source: BENZINGA