By depressing the dollar, we can make America great again, only for fear of many disadvantages

By depressing the dollar, we can make America great again, only for fear of many disadvantages [Compiled by Juheng.com, Guo Zhaoqing] According to MarketWatch analyst report...

[Juheng.com, compiled by Guo Zhaoqing]

According to MarketWatch Analysts report that no American politician wants Americans' lives to get worse and worse, nor will they deliberately take actions that are detrimental to ordinary American investors.

However, the policy of pushing down the dollar - although well-intentioned - may prove painful for U.S. investors in the long run.

In the short term, a weak dollar will benefit U.S. exports, boost the U.S. economy, and make America great again.

However, in the long term, the depreciation of the US dollar may have many disadvantages for American investors:

1. The US dollar has always been the world's reserve currency, which allows the United States to adopt favorable fiscal and monetary policies to benefit American investors. A depreciation of the U.S. dollar could jeopardize the U.S. dollar’s ​​reserve currency status.

2. When the U.S. government actively lowers the value of the U.S. dollar, who still wants to hold U.S. dollars? When other countries begin to doubt the value of holding U.S. dollars, the U.S. dollar's reserve currency status will be negatively impacted.

3. The United States is a highly indebted country. Most public debt is financed by foreigners. Why do foreigners buy U.S. bonds when the dollar falls?

4. When foreigners’ demand for U.S. bonds subsides, interest rates will rise.

5. The United States is the main importing country. When the dollar weakens, the cost of imported goods rises, which leads to higher inflation.

6. Rapidly rising inflation will be extremely detrimental to the stock market.

7. To control rapidly rising inflation, the Federal Reserve (Fed) will raise interest rates.

8. Rapid rise in interest rates will be negative for the stock market.

9. Foreigners are currently buying a large number of U.S. stocks. If the dollar falls, the reasons for foreigners to buy U.S. stocks will disappear, which is not what the stock market is happy to see.