Steven Mnuchin is trying to fix 'the first serious economic misstep by the Trump administration'

[Zorro]

Source: Business Insider

Treasury Secretary Steven Mnuchin attempted to shore up confidence in the US dollar on Thursday, clarifying comments that sent the greenback tumbling the day before.

During a panel at the World Economic Forum in Davos, Switzerland, Mnuchin appeared to applaud the relative weakness of the US dollar compared with other major currencies.

"Obviously a weaker dollar is good for us as it relates to trade and opportunities," Mnuchin said.

The weaker dollar makes it cheaper for overseas buyers to purchase goods produced in the US. That makes US exports more attractive, but also leads to more expensive imports. A weaker dollar can help stem a negative trade flow while potentially eroding the US's purchasing power.

Read more: http://www.businessinsider.com/steven-mnuchin-us-dollar-weakness-2018-1

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Inflation here we come!

[Eliot Rosewater]

1. The filth like him dont care if we have to pay more for something, they care ONLY

for their friends profit margins.

We are so completely fucked allowing this type of capitalism to continue.

[democratisphere]

12. Free Market Capitalism creates criminal enterprise companies that

price gouge the hell out of the consumer. The American health care system is the prime example of this horrendous abuse. Mnuchin is one of the ring leaders of these criminal enterprise systems which is the equivalent of a den of foxes watching over the entire chicken farm.

[question everything]

2. First? Where did he start? minus 10?

[SWBTATTReg]

3. Too late. Investors burned once, won't go back...

With tRUMP's and his administration's total lack of understanding that words actually mean something. Who's going to seriously listen to these guys? They are constantly mouthing off, like they are all still in an election cycle.

[Iliyah]

4. Most if not all of t-rump's administration are down right

"in it for myself" people. Didn't this guy help cause the recession of 2008?

These people don't know what the fuck they are doing or they just don't give a fuck. When they say GOPers don't know how to govern, this is proof.

[C_U_L8R]

5. Freakin' amateurs and incompetents.

If anything I hope we're all learning a lesson. This shit can't be repeated.

[Iliyah]

7. I know you remember W's presidency.

[C_U_L8R]

10. At least Bush had been a Governor and his staff had some experience

Except for that Brownie guy. Granted they were awful, but the Trump's wear their ignorance and inexperience like a badge of honor. No more unskilled outsider candidates - and especially no CEO's.

[Iliyah]

11. Ditto

[erronis]

23. A governor only because of pappy and name recog and party policos.

I'm not arguing, just sayin that most politicians aren't in their exalted seats because of intelligence or real-world experience.

[C_U_L8R]

27. Compared to the Trumps, the Bush's are freaking rocket scientists

Lord knows what that makes the Obamas. Lets Make America Smart Again.

[winstars]

6. Fucking great. I have to work in Europe for 4 months later this year!!! And get paid in dollars.

Scum

[SWBTATTReg]

13. Wow...that's gotta hurt...

When you get paid, change the dollars to local currency immediately (which I would imagine you're going to do anyways, just to pay bills etc. while you are there).

Just curious, how are they expecting you to live day-to-day w/ just US Dollars vs. the local currency?

[winstars]

32. Salary is direct deposit in US, no issue. Per diems (in $) is worth less, thats the issue...

[SWBTATTReg]

33. Oh man...best wishes over there, perhaps use the ...

time while you're over there to see some of the sights...it's an opportunity a lot of us don't get. My nephew and wife/their kid were in Brussels for a year or so, and visited quite a few of the sights, Germany, France, etc.

Best wishes and good luck to you.

[winstars]

34. My joke is if I don't get run over, stabbed or blown up while over there, I'm good.

But I have those very same fears here, maybe more so!!!

I love telling my few remaining 'pug friends how there aren't any "no go zones" over there. They can't believe it. I try to explain there are bad neighborhoods just like here in the good old USA that maybe you don't hang around in at night but Sharia law and all that other stuff is some sort of FauxNoise wet dream!!!

[George II]

8. But at Tuesday's briefing Sanders said "the dollar is stable"!

[ProfessorGAC]

9. That's Why What He Said Is So Stupid

It's simply pulling money out of one pocket to put it in another and then claiming success.

How did that guy ever get a job on Wall Street? This is blindingly dumb.

[erronis]

25. We all know that the Best People For The Job are usually just friends-of-friends or fellow travelers

I'll guess that you have some experience in academia.

I have a little, a lot more in corporate, quite a bit in government.

My take-away is that the shit still rises to the top. It doesn't hurt if you are a white male from a family that can afford to send you to an elite school. That doesn't mean that you should be the Secretary of the Treasury or pResident*.

What a total abdication of our hopes for the rest of the world. All in one f'n year!

[getagrip_already]

14. wonder what his trading portfolio did before he intentionally slid the dollar....

He knew what impact his comments would have. Either he or his cronies directly profited from it on the trading floor. Of course, it's probably hidden behind multiple shell corps and overseas accounts.

[Ligyron]

18. That would bear some looking into.

Journalists would be the ones to do so 'cause the DOJ sure won't.

[Calista241]

15. As long as they dont start printing more dollars, then its a momentary blip.

[sinkingfeeling]

16. When you put a know-nothing billionaire in charge of the Treasury, this happens.

[Vinca]

17. It occurred to me that I've been bitching a whole lot about high grocery prices lately.

This is why. The value of the dollar is down 12 or 13% so groceries are being increased in price by about the same amount to make up the difference. Thanks, Don.

[Perseus]

19. I don't like the guy, but I have to agree with him

Maybe some of you remember that during Reagan the USA bragged to the fact that the dollar was so strong without realizing that the USA, because of the strength of the dollar, would export less, and import more.

A weaker dollar would do a couple of things:
1. Bring more money into the country from sales of goods, increase exports.
2. Put some breaks on the imports
3. Make outsourcing more expensive and hopefully bring some manufacturing back.

I understand the above is a very simplistic way of putting it, but a strong dollar does not help the USA economy, unless we want to live off imports.

[alwaysinasnit]

21. Perhaps

I think that a weaker dollar might make sense if we had a solid manufacturing base, but we have off-shored most of it. Since we import most of our consumer goods, we will definitely see higher prices with a weaker dollar should the dollar continue in a downward trajectory.

[TexasBushwhacker]

22. Once the factories are closed, they're closed

A weaker dollar and increased exports might keep some factories open and perhaps hire more workers but I'd be shocked if any reopen.

[rtracey]

20. ugggg

KEEP YOUR EYES ON YOUR 401K......Might be time to look into CD or something where you cant loose your investment....I remember in 2007, A co-worker laughed at me for keeping my bulk of retirement in CD's and annuities. fast forward just a few months and as his retirement went down 45%, my CD's....nope.

[DFW]

24. It sure as hell eroded MY purchasing power

I am paid in dollars in the States and live in Euros in Germany. I have suffered a de facto 20% salary reduction since last March, and my 50% effective German tax rate hasn't gone down any (and the Germans are STILL trying to tax at 50% that part of my source-taxed American income, so that the combined U.S. 39.6% plus the German 50% leaves me with a net of 10.4% for that part of my income--still arguing that one, since the double-taxation treaty is vague on those rules).

I guess this is great if you run a GM plant in the USA and sell pickups to Europe, but for those of on U.S. incomes and European living costs, it is a whole lot less fun.

[pbmus]

26. Inflation + higher interest rates...ordered by the elite

[C_U_L8R]

28. Well, that didn't take very long.

They walk right into the freaking WORLD ECONOMIC FORUM and fall flat on their faces.

'DOH !!! What the Trump !!

[DallasNE]

29. Old school Thinking On Trade

Yes, it will ramp up inflation but unless we export that inflation American goods will soon be more expensive abroad making the gain temporary. Boeing and farmers benefit but not American consumers. Much of our consumer goods can only be imported because America no longer produces those goods. Higher food costs and higher costs for imported consumer goods actually points toward stagflation. Deficit spending increases and debt service skyrockets. What could possibly go wrong?

[lagomorph777]

30. The first major misstep was the Billionaire Tax Cut.

Munchkin's "misstep" is just a normal Tuesday in Trumpworld.

[CountAllVotes]

31. No kidding!

They line the pockets of the rich so they can have ... more more more more more!

Makes me sick!