Inflation

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Tariffs were widely expected to push up consumer prices, of course, but a portion of those increases was expected to be offset by a stronger greenback. Bessent said he expected 10 percent tariffs to translate into a 4 percent appreciation of the dollar — in line with the research cited by Yale’s Budget Lab. Miran also anticipated dollar growth would diminish the effect of higher prices.

If Trump’s tariffs are putting upward pressure on the dollar, it hasn’t been enough to overcome the myriad factors that contributed to its decline over the last seven months. The dollar has fallen by about 9 percent year-to-date against other currencies. If the global demand for the greenback is down — and most global trade is transacted in dollars — that limits the likelihood that foreign companies will reduce prices for U.S. importers looking to offset the cost of Trump’s tariffs.

Wells Fargo economists Sarah House and Nicole Cervi put it this way in a research note on Thursday: “The broad depreciation has likely incentivized foreign suppliers to bump up their invoice prices, as dollar-denominated revenues are not stretching as far when translated to their home currencies.” [Emphasis mine.]

Of course, the subtle increase in import prices in June reported by the Labor Department on Thursday belies the decline in overall import prices that occurred over the previous year. There is evidence that certain exporters — particularly Chinese businesses— are absorbing some of Trump’s tariff costs by slashing what they charge. (And, over time, a weaker dollar would be a boon to domestic exporters that the administration is aiming to support.)

But the fact that import prices climbed at all last month has been interpreted by some economists as a sign that the dollar’s relative weakness could reverse last year’s trend. That means consumers are likely to feel more of a bite if tariff-related price increases persist." https://www.marketplace.org/story/2...llars-value-declined-by-ten-percent-this-year
 
Should the dollar be so important as who has the dollar?

As businesses close, people become unemployed. If they stay unemployed for any amount of serious time, they will have less dollars. Having less dollars to survive with, their dollar value is showing a much greater decline to themselves. As prices continue to climb, people who were living close to the edge of poverty start doing without items they need.

Buying on the internet has hurt more businesses than a lot of folk realize. Dollars start to change the hands they were going to. Fewer people have more money, and a greater amount of people have less money.

A lot of states are trying to see the sales tax funds they are losing to internet sales. Internet sales hurt government entities this way. It is almost like a train going high speeds that has lost its breaks. We should try and help each other to slow it down.

Lower interest rates, even if but for a short time, would enable people and government paying higher interest rates to refinance their debts. This would help those in debt, even if those lending the monies would make less. It would help the greater amount of people, while maybe
the fewer might have less income. It may not help those not in debt, including some people living off their Social Security checks.

Insurance rates are increasing, medicine costs are increasing, groceries are increasing, taxes are increasing, deductibles are increasing: those living off of Social Security checks watch the actual value of their checks drop far greater than any SS increases we may or may not see. Many people listened to how they would receive refunds that have received nothing but words.

In this climate, great risks may not be wise. Governments need each other. This is a world we are living in, not just a country. Countries should try and play on level grounds with their imports and exports: their environmental laws and work ethics. We all need to survive this climate, not by taking advantage of those we work with. Little steps are more readily acceptable than all at once techniques. It seems we are at the mercy of each other.
 
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