Donald Trump wants a strong dollar and a weak dollar at the same time. He can't have both. When the BRIC nations last month floated the possibility of a reserve currency that would replace the dollar, Trump was quick to warn that anyone who challenged the mighty dollar would pay for it.
A stronger dollar would lower prices for imported goods and benefit Americans, making it expensive for consumers of American goods in other countries. A weaker dollar would benefit foreign buyers, while adversely affecting American consumers of imported stuff. It's a Catch-22 type of situation. Trump can only threaten other countries to import more from America. He has told Modi to buy more US weapons, he has asked the Saudis to invest a trillion dollars over the next four years in the US, at the same time threatening to impose tariffs on China, Mexico and Canada. He's even ordered the Saudis to lower prices of oil. All this blustering won't help, unless Americans tighten their belts and change their lifestyles.
At present, the US imports much more than it exports. The gap between exports and imports is 78 billion dollars, while its debt is 36 trillion dollars. It will be a long time before Trump is able to improve the economy, if ever.
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