schiffgold.com / BY SCHIFFGOLD / APRIL 14, 2017
President Donald Trump put a damper on the dollar earlier this week when he claimed, in a Wall Street Journal interview, it was “getting too strong.”
“I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me. But that’s hurting — that will hurt ultimately … It’s very, very hard to compete when you have a strong dollar and other countries are devaluing their currency.”
After his comments, the dollar index dropped 0.7%.
During an interview on CNBC’s Future’s Now, Peter Schiff said Trump’s comments on the dollar were correct but insisted the president doesn’t understand the reasons behind it or its actual impact on the economy.
“Well, I believe he’s correct. The dollar is overvalued, but he’s wrong in his view about how the overvalued dollar impacts the US economy, at least in the short-run. And because the dollar is overvalued, we have an artificially high standard of living. I think that when the dollar does decline, it’s going to take the US standard of living down with it.”