William Thien

Consumers and Currency Manipulators

Posted on: April 19, 2017

I am always a bit puzzled (not entirely, just a bit) when I hear our country’s leadership say things like “the dollar is too strong” or “we need to make the dollar more attractive in the foreign currency markets.”

What they are saying essentially is that American made products aren’t as attractive in overseas markets if the dollar is strong because the American products become too expensive or less attractive price-wise for foreign consumers.

But a weaker or weakened dollar also means that I have to spend more of my dollars to get what I want. If you don’t make that many dollars or as many as you’d like, if you are in the lower to lower middle income brackets, the argument that the dollar is too strong is a somewhat punitive statement and it means that action to bring down the value of the dollar will have a direct impact on your buying power, decreasing your buying power.

Few would disagree that America needs to sell more products in foreign markets but you would hope that our country’s leadership would find other ways to make sure such sales increase such as instituting quality controls on production or some other method rather than simply selling everything on the cheap and making everything more expensive for the American consumer, punishing the American consumer, which is what they are doing.

Manipulating currency may be easy on American producers but it is also hard on American consumers as it is the same as taxing their dollars so they have less or simply reaching into their pocketbooks and taking the money right out by decreasing their buying power.

Have you seen the price of a new car or house lately? Maybe the dollar is weak enough already.

Copyright © William Thien 2017

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