I think they can keep the dollar propped from a total collapse for a long time yet. Too much debt owed to too many countries for it to go away. China may be looking at an alternative, but it would be against their interest to let the dollar collapse.
Inflation will kill us, and we'll start using alternate currencies, and bartering for goods. They'll prop fiat up until after you need a wheelbarrow full to buy a loaf of bread.
Inflation will kill us, and we'll start using alternate currencies, and bartering for goods. They'll prop fiat up until after you need a wheelbarrow full to buy a loaf of bread.
You do know that the long term problem faced in the West is deflation don't you? Inflation has been dead for over 30 years.
Well, if deflation is a general decline in prices, caused by a reduction in the supply of money or credit, I'm not so sure. I see rising prices on everything, not a decline in them. I see people locally getting raises, which leads me to believe money is more available, but worth less...and depending on type of credit, some is easy to obtain...including loans for land. At least here.
I don't consider myself a financial genius by any means, I just don't see a big fast collapse of the dollar...too many forces at work.
I'm always open to hear other views, and learn new things though.
Fair points.
Inflation is a narrow measurement of price increases of a basket of specific goods. Its low or non-existent in the Western economies. It doesn't include house prices, rent or share prices so its fair to say that some things are getting much more expensive. The theoretical reason deflation is a problem is that there is a global gut of savings - some inflation might force people to spend the savings and thus get the economy moving.
