{"id":101603,"date":"2017-02-01T07:47:13","date_gmt":"2017-02-01T12:47:13","guid":{"rendered":"http:\/\/countingpips.com\/?p=101603"},"modified":"2017-02-01T07:47:13","modified_gmt":"2017-02-01T12:47:13","slug":"furore-over-trump-administrations-currency-exploitation-rhetoric-is-naive-and-hypocritical","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/02\/furore-over-trump-administrations-currency-exploitation-rhetoric-is-naive-and-hypocritical\/","title":{"rendered":"Furore over Trump administration’s currency exploitation rhetoric is na\u00efve and hypocritical"},"content":{"rendered":"
February 1, 2017<\/div>
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By George Prior<\/strong><\/p>\n

The furore over the Trump administration\u2019s currency exploitation rhetoric is \u201cnaive\u201d and \u201chypocritical,\u201d affirms the boss of one of the world\u2019s largest independent financial advisory organizations.<\/p>\n

Nigel Green, founder and CEO of deVere Group, is speaking out after controversial comments given to the Financial Times by the U.S. President\u2019s top trade adviser.<\/p>\n

Mr Green observes: \u201cGermany has become the latest country after Mexico, China and Japan, to be labelled a currency manipulator by the Trump administration, which seems determined to challenge trading partners that run large surpluses with the U.S.<\/p>\n

\u201cThe Head of the new U.S. National Trade Council, Mr Navarro, insists that the Euro is like an \u201cimplicit\u201d Deutsche Mark, whose \u2018grossly\u2019 low valuation gives Germany an unfair advantage over its trading partners, such as the U.S. and the EU.<\/p>\n

\u201cWhilst, he was criticizing Germany, President Trump was lambasting China and Japan for devaluing their currencies at a meeting with top pharmaceutical executives.\u201d<\/p>

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At that meeting, Mr Trump said: \u201cThey play the money market, they play the devaluation market, while we sit here like a bunch of dummies.\u201d<\/p>\n

The deVere CEO continues: \u201cThe rhetoric from the administration, and possibly the increasing likelihood of currency wars has, perhaps unsurprisingly, caused international furore.<\/p>\n

\u201cHowever, much of the indignation – on both sides – is naive and hypocritical.<\/p>\n

\u201cWhilst it may not be fair nor right, it can be sensibly assumed that currency manipulations do indeed take place around the world as central banks, quite rightly, look out for their jurisdictions\u2019 best interest using all their tools that they have at their disposal, such as competitive devaluations. As such, the outcry following Mr Navarro\u2019s statements seems somewhat na\u00efve. It is also perhaps na\u00efve to think that a Trump administration would not take this approach, given the previous rhetoric on this issue.<\/p>\n

\u201cIt seems it is Mr Navarro\u2019s perception that Germany\u2019s economy has considerably benefitted from having a weak currency, the Euro. Like many, he argues that if it had remained with its stronger Deutsche Mark, its exports \u2013 which account for almost half of its economic output \u2013 would not have been nearly so robust, especially amongst other Eurozone countries.<\/p>\n

\u201cThe opposite is true for other EU nations, such as Spain, who have suffered extra competitive burdens by having a currency that is stronger than their former ones, such as the peseta.”<\/p>\n

Mr Green goes on to say: \u201cOn the other hand, there is a whiff of hypocrisy here too from the U.S. government.<\/p>\n

\u201cIndeed, the term ‘currency wars’ originated from the Brazilians after the Fed began their Quantitative Easing operations at the end of 2008 and the dollar weakened. \u200eThe U.S. has, it can be argued, been as enthusiastic about using monetary policy to devalue as the Europeans and the Asians.\u201d<\/p>\n

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deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.<\/em><\/p>\n

www.devere-group.com<\/a><\/p>\n

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By George Prior The furore over the Trump administration\u2019s currency exploitation rhetoric is \u201cnaive\u201d and \u201chypocritical,\u201d affirms the boss of one of the world\u2019s largest independent financial advisory organizations. Nigel Green, founder and CEO of deVere Group, is speaking out after controversial comments given to the Financial Times by the U.S. President\u2019s top trade adviser. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-101603","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/101603","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=101603"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/101603\/revisions"}],"predecessor-version":[{"id":101604,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/101603\/revisions\/101604"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=101603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=101603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=101603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}