thegreatyakk

Will the U.S. Dollar Be Falling Soon?

You ask the question: "Will the Dollar be falling soon?" It already is, sir. Don't make the mistake of comparing it with other fiat currencies, you must measure it against something of real value. Precious metals having been climbing in relation to the dollar since its convertibility was severed decades ago. This accelerated in recent weeks as well.

Letting the Reinflation Genie Out of the Bottle

On the inflation question, one of the greatest dangers to consider is the fact that the long-term effects of inflationary policies will likely lead to total collapse. Long-term inflation encourages net borrowers and punishes net savers. Ultimately, this is unsustainable economically and politically. Politically, it will produce a voting majority that will continually push for unnaturally low interest rates and inflationary policies (I fear we've already reached this tipping point). Economically, it will lead to bankruptcy when we are no longer able to service our debt. If this happens at the national level and the US defaults on its obligations, the whole game is up.


>User 55065: For a economy-idiot like me, can someone explain why >having some 20-30% inflation of prices and wages be so dreadful. If >wages magically went up by, say 25%, most of the home loans and >credit card loans will suddnly become payable by the consumers. And >then of course prices will also go up by 25-30%, and all that has to >happen is decreased future consumption and we could be OK? So in >future even with 25% higher incomes, we all consume 20% less food, >20% fewer cars and fuel etc, that is the new reality any way, can the >wiser crowd shed some light on inflation for us?