OK, OK, let's assume Trump is serious about a "race to the bottom". If so, would savers be beneficiaries? Here's a hypothetical example.
Assume the dollar is an acorn, and foreign squirrels eat them. As the dollar shrinks, foreign squirrels must achieve a higher interest rate on those acorns in order to eat the same number of acorn calories.
Get the picture? A falling dollar (assuming other currencies fall "less") should result in higher interest rates here in the US of A. Other factors, of course, are noteworthy. The Treasury market is deemed the safest on Earth, even if the dollar devalues. The dollar is a reserve currency.
So, DA fans (and armchair economists), is the concept of a currency war bullish for interest rates? My tummy tells me yes, but I am always open to opposing viewpoints.
