The Zimbabwe Dollar and the US Dollar were once at parity. A 100 Trillion Zimbabwe dollar would have surpassed the entire world’s consumption. Now it buys you a lunch. That is what happens when you try to spend your way into prosperity. I want the US to be like the US our founders envisioned – fiscal responsibility and sound money.
Zimbabwe is now using the US dollar as their back up currency but what will the United States use once the dollar is no longer valuable?
Most of our debt to GDP ratio is bogus. If we print $10 and put it in circulation, we would increase consumption by $10. That would make it appear as though our debt to GDP ratio is 1:1. Meanwhile, the value of all USD in circulation is diminished. That wipes out the poor and it wipes out savings. The rich love it. They see their stocks and investments go up in nominal terms. The government likes it because they can repay their debts with cheaper money.