Over the years I have talked about this problem ad nauseum here on Mish’s blog and other places from way back even before the supposed to be secret Plaza Accords in 1985 when Reagan was president. Since Reagan was more of a true free trade tax cutting capitalist, everybody in the world started shoving their money into the dollar, and into dollar based assets of stocks, bonds whatever. The bull market for example, gave foreign investors a twofold return as the dollar and stocks kept moving up together. Well the dollar got so strong it began to hurt American multinational corporations ability to compete. So the Plaza Accords mission was to take down the dollar to a more reasonable level to help our multinational companies and reduce the trade deficit. Despite a crash of over 20% in the stock market on black Monday Oct 19, 1987, the PPT was able to bring confidence back into equity markets all the world over. Finally my point is that when the dollar got down to a more reasonable, fairer level, American multinational corporations, instead of growing their businesses in a responsible way , using their advantage to gain market share, selflessly just raised their prices, to get the earnings up in a hurry to get the stock up so their stock options would appreciate making them rich n a hurry. IMO stock options help to make executives selfish and irresponsible. Now we see it all over again as corporate executives borrow hundreds of billions of dollars at low interest rates for stock buybacks getting the earnings up, their stock up to raise the value of their options once again the fast and easy way-so hey go for it boys! Our trade deficit with China alone is almost a billion a day so if the Trump administration wants to get the dollar down to help the trade deficit and boost our exports, and provide jobs, he’s going to do much more than just reduce the Corp. tax. Something has to b done about stock options , and irresponsible selfish buybacks.