VP JD Vance Promotes Devaluing US Dollar to Boost US Exports and US Jobs. THIS MEANS AN EXPLOSION IN COMMODITIES
This Means a Rotation from Over-valued Large Caps into Mining and Energy Small Caps. This is the Moment We've been Cheering on for Decades!
JD Vance's stance on devaluing the dollar to boost exports, which is relevant to the upcoming election.
JD Vance, who has been selected as Trump's running mate for the 2024 presidential election, has expressed support for devaluing the US dollar to increase exports.
This position aligns with a more aggressive US First, Rust Belt First trade policy that the Almost For Sure Winning Ticket (Trump-Vance administration) will pursue.
The main points of Vance's stance on dollar devaluation are:
Boosting exports: Vance believes that a weaker dollar would make US exports more competitive in international markets.
Economic strategy: This approach is part of a broader economic strategy aimed at revitalizing American manufacturing and potentially creating more jobs in export-oriented industries. Here we go (Rubber in Akron, Steel in Pittsburgh, Coal in Appalachian, Cars in Detroit, Glass in Corning, Ceramics in the South, etc)
Alignment with Trump's policies: Vance's position on dollar devaluation appears to complement Trump's previous focus on reducing trade deficits and promoting American-made goods.
Potential impact on commodities: Silver Academy’s Jon Little states “this policy stance will lead to a "megatrend" in commodities, as a weaker dollar typically makes dollar-denominated commodities more attractive to foreign buyers.
As the 2024 election approaches, Vance's stance on dollar devaluation is likely to be a significant talking point, especially regarding its potential effects on trade, manufacturing, and overall economic policy
Understanding JD Vance's Economic Vision
Debating JD Vance's View on the USD: It's not productive to debate the merits of JD Vance's perspective on the US dollar. The focus should be on the actions and plans of Vance and his team.
Dollar Devaluation Speculation:
For weeks, rumors suggest that Robert Lighthizer (Trump's former trade representative) and his allies are considering dollar devaluation.
This potential move hinges on Lighthizer’s elevation to Treasury or other significant economic positions in the next White House administration.
Life imitates Art
MAGA-Trump-Vance Perspective:
previous administrations (Bush, Biden, and Obama) harmed the U.S. rustbelt.
Trump-Vance plan to use the USD as a tool against trading partners, employing tariffs and protectionism to bring jobs back to America.
Critique of Existing Trade Policies:
JD Vance and his supporters argue that free trade, particularly with China's fixed yuan to the USD, is detrimental.
They claim that both Republicans and Democrats were overly reliant on the disinflationary benefits of globalism, leading to significant economic and social damage.
Impact on Communities:
Vance asserts that free trade policies destroyed millions of lives and undermined families, especially in states like Ohio and Pennsylvania.
His book and its film adaptation focus on these issues.
Future Economic Strategy:
Vance and his allies plan to shift towards policies aimed at bringing jobs back to the U.S. and managing sustained inflation.
While success is not guaranteed, understanding their approach is essential for investors and policymakers.
By examining these points, it's clear that the MAGA-Trump-Vance faction has a distinctive economic strategy that could reshape U.S. trade policies and economic landscapes.