The irony is almost too good to be true.
People underestimate the power of the peso. One of the world’s most traded currencies, a lot can be learned from watching the story it tells. Right now, it’s telling a fairly hilarious one: When Donald Trump slides in the polls, the peso’s value grows.
Is it mere coincidence? Experts don’t think so. Nomura Latin America strategist Benito Berber said to clients on Tuesday:
The peso is rallying and, more importantly, it has more room to appreciate as Hillary Clinton continues to climb in the polls—gaining ground on Donald Trump, who has proposed policies that could potentially hurt Mexico’s economy.
Think about that. Donald Trump’s promise to treat Mexico as a third-world nation, unwelcome in the coming re-greatness of America, has had real consequences on their economy. As he threatened to build a wall to keep “illegals” out he also threatened to stop people from sending their pay to their families. He’s promised to kick 11 million people who live, work and pay taxes here out of the country. He’s threatened to unravel NAFTA, which may be a short-term solution to a small percentage of American manufacturing problems but would be a huge hit to Mexico and therefore the global economy. He’s threatened to increase visa fees and levy new tariffs. Basically, he’s threatened to destroy Mexico’s economy without considering the harm that would do to our own.
Trump understands none of this. He understands only one thing: Hate. Hate is what has fueled his ridiculous comb-over of a campaign since the infamous escalator ride to the bottom of the barrel last year. The cesspool he wades around in to gather support is full of racists who are grateful they’re allowed to “speak their mind,” which is code for being able to yell n-words and “wetback” in public and be cheered by other like-minded simpletons evolution should have left behind.
While some will call the rise in the peso and Trump’s fall coincidental, citing dropping oil prices and expectations of US interest rate increases as more conventional explanation, that may actually be more of a stretch. The Wall Street Journal reports:
For some peso traders, the possibility of a Trump presidency has been added to the list of things that could go wrong for the peso. In its monetary-policy statement Thursday, the Bank of Mexico said uncertainty over the outcome of the U.S. election is among factors that could cause the peso to depreciate.
‘The Trump factor is a theme, as a victory could lead to capital outflows,’ said Eduardo Ontiveros, head currency trader at Grupo Financiero Interacciones in Mexico City.
Mr. Ontiveros compared the recent currency gains with losses when Mr. Trump was shown ahead in a number of polls following the Republican Party convention in July.
Poor Donald. He can’t even run a successful smear campaign.