Trump’s Trade War Poses Dollar Intervention Question

The transcript discusses the potential for unilateral currency intervention by the US, highlighting historical precedents like the Plaza and Louvre Accords. It explores the concept of 'capital wars,' where the US might tax capital inflows to weaken the dollar, and the challenges of such interventions. The impact of trade wars on the dollar and manufacturing sector is examined, suggesting that taxing foreign Treasury holders could be a strategic move. The possibility of direct market intervention by the US is also considered, though its effectiveness is questioned.

What historical level of dollar overvaluation often leads to currency intervention?

• 15%

• 25%

• 20%

• 10%

What is the term used to describe the US strategy of taxing capital inflows to weaken the dollar?

• Trade Wars

• Currency Battles

• Fiscal Conflicts

• Capital Wars

What tax change is suggested as a method to weaken the dollar?

• Raising withholding tax on foreign-owned Treasurys

• Implementing a new property tax

• Increasing sales tax

• Raising income tax

Which past US administrations were active in the FX market?

• Obama and Trump

• Clinton and Reagan

• Clinton and Bush

• Reagan and Bush

What might be more effective than direct market intervention according to the discussion?

• Lowering interest rates

• Increasing trade tariffs

• Discouraging capital inflows

• Boosting domestic production