fschmidt
Poster
- Joined
- Mar 20, 2021
- Messages
- 564
The standard monetarist theory of inflation is that money printing causes the currency to be devalued which causes inflation. The problem with this theory as an explanation of America's current inflation is that the US dollar is strong compared to other currencies, so the dollar itself isn't devalued. America has a lot of money printing but since the dollar is the international currency, the world basically absorbs this printed money. This will continue until the dollar loses reserve currency status which will take a few years.
So then what explains America's current inflation? Since the dollar is strong, imports should be cheap. My answer is that America has become a completely dysfunctional country where it is expensive to do anything, even to transport and sell imported goods. America is dysfunctional for 2 reasons. First, the population has turned to shit, so workers are very inefficient. And second, America no longer has a free market. Instead, it is run by big business and the government. So money is made mostly through corruption instead of through serving consumers and competing on prices.
Anyone who manages to get an online business working that sells to Americans can benefit from all this. Move to a cheap country like Argentina and earn strong US dollars.
So then what explains America's current inflation? Since the dollar is strong, imports should be cheap. My answer is that America has become a completely dysfunctional country where it is expensive to do anything, even to transport and sell imported goods. America is dysfunctional for 2 reasons. First, the population has turned to shit, so workers are very inefficient. And second, America no longer has a free market. Instead, it is run by big business and the government. So money is made mostly through corruption instead of through serving consumers and competing on prices.
Anyone who manages to get an online business working that sells to Americans can benefit from all this. Move to a cheap country like Argentina and earn strong US dollars.
