Why pick euros instead of dollars when dollars IS the currency in the US of A?
People like you give the Fed a free ride. So, for you, no matter how much liquidity the Fed pumps into the system, a buck is a buck, $10 in 2001 are worth the same to you as $10 in 2008, even if oil has cuadrupled and gold tripled? Supply and demand, my friend: the more plentiful dollars are, the less value they have. What I found on this thread is that people can’t comprehend that dollars can be valued in a metric other than dollars, and that there can be too many dollars for them to keep their value.
You approach to money is what we call “monetary illusion.” $10 are not the same as another $10 unless both are at the same time and place. This is how we got into the stagflation mess of the 1970s, there was a widespread belief that a little more money, and little more inflation would grease the economy’s wheels and we would all be happy. It didn’t happen. We had inflation and low growth.
When people realized that $15 didn’t have the same purchasing power as $10 a few years back, then things started to unravel: producers started to increase prices routinely and consumers cut back. The current loose monteray policies are taking us back to that 70s scenario.
