Fiscal policy that is likely to sink the dollar is also likely to sink the stock market.
I suspect Republicans aren’t trying hard to stay in office because the stock market is likely to tank.
[Fiscal policy that is likely to sink the dollar is also likely to sink the stock market.
I suspect Republicans aren’t trying hard to stay in office because the stock market is likely to tank.]
Actually, currency depreciation tends to jack up stock prices in that currency. And why wouldn’t stock prices go up when even a loaf of bread costs more? In peso terms, the Mexican stock index has gone up 30x in 30 years, vs the S&P 500’s 10x advance, in dollar terms, in the same period. Unfortunately, in dollar terms, the Mexican stock index has gone up less than the S&P 500. That’s because the peso is now worth 20% of its value 30 years ago.