| Last week, Treasury Secretary Scott Bessent said the U.S. has a "strong dollar policy." That's simply not true. And that's bad news for savers. Just a day before Bessent's statement, President Trump himself said of the dollar's decline, "I think it's great." The president has long been an advocate for a weak dollar, as it improves exports. However, it destroys savings. A weak dollar also means imports are more expensive, and since so much of what we buy comes from outside the U.S., that adds to inflation. Oil, priced in dollars, typically rises with the fall of the dollar as well. You can see on this chart that when the dollar started to decline rapidly in mid-January, oil prices took off. The decline of the dollar is also one of the reasons gold and silver have gone parabolic. The U.S. dollar is down 12% since inauguration day last year. Even if the dollar rebounds and doesn't deteriorate your savings, the banks will. |
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