| Mr Khan said:
Hyperinflation in the U.S. case is virtually impossible unless the U.S. dollar falls out of favor as the denomination of choice in world markets (although i know you feel that is already happening, so there's that), meaning that U.S. accumulates a lot of debt denominated in other currencies, and then that this debt comes due for some reason, forcing rapid money-printing to try and inflate the debt away, which causes a sudden and massive breach in confidence. |
It is happening but certainly not at the pace that would make rest of the economies immune to the "bunkrupt club" (that's your Western world more or less + Japan) turmoil. So the dozens of the final nails in the coffin of the dollar as a reserve currency will be put by the Fed itself, like it was with oil prices. If you have trillions of dollars of internal and externald debt, that joint effort of the Jesus, Yahweh and Guatama won't fix, what other "good" options you have? Flood the economy with "free" money and burn everything in the flame of hyperinflation. Yes, it'll make every American 4-5 times poorer in no time, but if well played, for example, you can achieve a hyperinflation within the country with steady or growing demand and basically a revaluation of dollar outside of it for short period of time, and then you're golden (well, not you, but people who have access to the money printing machine, but you got an idea) -- that way you can rebuild a colonial taxation mechanisms and the dollar in the way it is now. Big question if that's technically doable, since it'll require a rampant escape of european and asian capitals in the US. All political efforts should be put to guarantee that by all means possible (wars, coups, propaganda etc.), so that consortium of the chosen banks the Fed will lend trillions of dollars to (the money that'll send the country into hyperinflation) will be purchasing valuable assets at a fraction of their real cost.
