Your analysis, while interesting in itself, has more meaning. One way the Fed is helping to solve our severe indebtedness is through inflation. By successively shrinking the value of US $, we actually have to pay less in real value to our Creditors, both public and private. Since most of the Debtors are American and Creditors are Foreign, this is politically very attractive. (Of couse, the world has wizened up now and is repudiating US $, causing precipitous drop now!).
It has another advantange – once oil reaches $200 or $300, Gas is $6 -$9, Gold is $2000, A box of cereals is $10, A loaf of bread/doz. Eggs are $5 etc., a $500K house may start looking cheap. That should help end the housing crisis.
