President Trump told reporters on July 25 that he “likes a strong dollar” but “you make a hell of a lot more money with a weaker one.” The dollar index is down 10% since January. That’s the steepest six-month drop since 1973. The U.S. M2 money supply just hit $22.02 trillion. That’s a record. Inflation isn’t gone. It’s buried under fiat.
Trump’s comment came hours before departing for Scotland. He said the strong dollar “sounds good” but “you can’t sell tractors, you can’t sell trucks, you can’t sell anything.” He cited Caterpillar’s 16% stock surge as proof that exporters benefit from a softer dollar. He added, “It makes you feel good. I love strong dollars.” But he’s not defending one. He’s letting it slide.
The dollar’s decline is structural. Tariffs were expected to push it higher. They didn’t. Treasury Secretary Scott Bessent projected $300 billion in annual tariff revenue. June alone brought in $27 billion. Trump now says he’s “thinking about a little rebate” for Americans using that money. No bill exists. No IRS guidance. No Treasury directive. Just a quote.
Inflation is not 2%. That number is cosmetic. Gold is up 18% year-to-date. Homes priced in gold are near 40-year lows. Fiat is the problem. M2 jumped $140 billion in 60 days. That’s a 0.63% monthly increase and 4.5% year-over-year. The Fed’s balance sheet is still bloated. Rate cuts are coming. The dollar will bleed more.
2% inflation is a myth, or worse, a lie. Anyone living in the real world over the past five years knows that. pic.twitter.com/4W7nk9ACwP
— Peter Mallouk (@PeterMallouk) July 25, 2025
Homes have almost never been cheaper when priced in gold.
The housing market is only unaffordable because our fiat money is increasingly worthless. https://t.co/6mwJRQC4tQ pic.twitter.com/PdEUbza6IR
— Christian Heiens 🏛 (@ChristianHeiens) July 23, 2025
This chart proves Trump’s claim that he’s already crushed inflation is false. Inflation is the increase in the supply of money and credit. The BBB, tariffs and upcoming rate cuts will tank the dollar and send inflation soaring. Buy as much gold and silver as you can afford. https://t.co/E5WAis5Fzw
— Peter Schiff (@PeterSchiff) July 25, 2025
https://www.fastcompany.com/91374968/trump-dollar-strength-inflation
https://fred.stlouisfed.org/series/M2SL
https://www.economicgreenfield.com/2025/07/22/money-supply-charts-through-june-2025/