That’s how the economy really works in the long run. A country that decreases manufacturing will have a decreasing currency. One country must have real and useful goods to trade for such useful things from another country. Currencies will balance in this situation.
Have fun. Enjoy the slide.
“Have fun. Enjoy the slide.”
My Industrial Supplies business will be a hobby if this asshole gets re-elected.
There is no necessary reason for the dollar to drop if manufacturing declines. Exchange ratios are determined, in the long run, by supply and demand of the various currencies.
Agricultural products are a huge export for the US and increases in that sector could outweigh the decrease in manufactured products.
In addition, manufacturing declines could, perversely, lead to the strengthening of the dollar because they would mean a slowing economy which reduces demand for foreign exchange strengthening the dollar.