We sell a car for 100 dollars. The Chinese sell a car for 100 dollars. The chinese go oh wait wait, our currency is only worth 10 cents. Our chinese car only costs 10 dollars. You can sell our cars for 80 dollars and after 10 dollars for transport, make 60 dollars profit easy cheesy peasy. So America moves all manufacturing to china and our companies become “marketing brands”
No the question is…. why don’t we go to China and buy OIL for 20 cents a gallon and trees and minerals for ten cents on the dollar? Why? Oh that’s not allowed.
Ok so what if Ameirca says “well, you say your dollar is worth ten cents, but we see that you can buy a car for only ten of them while here it costs 100, so we now say your dollar is worth one of ours and we will buy your dollars for one of ours. Since we print money we will just print as much as you want. But the chinese refuse to budge and go NO we will just buy one of your dollars for TEN dollars and since we print money out of thin air there is no limit to it. Suddenly every investor who sells chinese dollars then buys american dollars then sells chinese dollars over and over will very soon have INFINITE MONEY. Then what do we do?
We will all be like cavemen trading sticks for loaves of bread. Because you cant take a trillion dollars with you to the store (well not in 20 dollar bills). Very quickly people will replace the worthless fiat money with gold and silver. But there isn’t ENOUGH gold and silver so they will also replace it with an ENERGY token, which will be in BTUs or some equivilent, and some source material like propane, and all redeamable/exchangable somewhere somehow. And finally we will have returned MONEY to our currency.