In an open letter from Wall Street economist Steven Ricchiuto to Federal Reserve Chairman Jerome Powell, a dollar devaluation to save the economy is what’s being demanded of the Fed.
Ricchiuto wrote the following: “The key to breaking out of this deflationary downward spiral of interest rates is to target inflation by expanding the Fed’s balance sheet — in other words, print money. This bold action will keep the domestic economy from being pulled down the hole in which both Europe and Japan find themselves — that of negative, long-term interest rates.”
Trump tweeted this: So Germany is paying Zero interest and is actually being paid to borrow money, while the U.S., a far stronger and more important credit, is paying interest and just stopped (I hope!) Quantitative Tightening. Strongest Dollar in History, very tough on exports. No Inflation!…..
I can’t begin to tell you how disturbing this is. Do you think Powell would really devalue the US dollar for strategic reasons?