11/2: Lots and Lots of Paper Money!
Edward Wimberley: So what are we to believe? Is the monetization of the dollar (i.e. printing dollars without any warranty other than the “word” of the U.S. that they will stand behind them) ruining the nation by progressively stimulating hyperinflation and high unemployment (a.k.a. stagflation), or is it good for business – as a devalued dollar theoretically renders the prices of American products comparatively cheaper than imported goods?
The general consensus from international markets seems to be that the dollar must be significantly devalued if the world economy is to be stimulated. In other words if the dollar is strong, other world currencies (by and large) are weaker by comparison, and vice versa.
Good piece!