The productive capability of the US is being hollowed up and replaced with printed money. It’s like a heroin high, great when the junk is floating through your brain, but when it stops ...
I don’t know if oil will do enough to replace it.
Interesting proposition in a post last week.
The dollar will both deflate and inflate.
The “cyberdollars” will inflate infinitely, as in, disappear,
whilst the actual currency that you hold in your hand will deflate and become 100 times face value due to its relative scarcity.
Actual physical money is about 3% of the total money supply.
The productive capability of the US is being hollowed up and replaced with printed money.
Printed Prosperity. Money for nothin. LOL
You just know this won’t have a happy ending. Just another financial bubble in the making.
Heres a ten year chart of the dollar. Notice how its been going mostly sideways since 2008.
My wag is that because of rising US oil production the break out will be to the upside. (Why? even incompetently run countries like brazil have strong currencies because they are oil independent.)
but we’ll see.
you too have to submit to the same discipline of the data.
if the dollar breaks out to the downside then your thesis is right. fiat money kills the value of the dollar
if the dollar breaks out to the upside —then oil, the improved balance of payments and 50-100 trillion dollars worth of new oil deposits in the USA backing the dollar...trumps fiat money.