Do you think countries that don't use the USD will remain unaffected? People keep blaming this on the fed "printing money", but that logic only holds water when just the USA is affected.
Everyone is experiencing inflation; it's a global phenomenon. Some countries have it even worse than the USA because their local production is getting redirected to the USA, where even higher prices will be paid.
In two years, things will very likely cool down globally.
If commodity inflation is caused by an over abundance of USD, then there would be a whole host of side effects from this. One of which, is as I said, price inflation localized to the USA. The second would be a weakening of USD relative to most other strong currencies. So let's look at that:
USD : Euro - Slightly weaker relative to 2020, but overall, right around the average strength over the past ten years.
USD : GBP - Same as the Euro.
USD : CAD|SGD|AUD - Weaker than 2019, but much stronger than the 10 year average.
USD : JPY|INR - Very strong
USD : CNY - much weaker than 2019, better than 2018, right about at the 10 year average.
It's there, but only slightly. And only after 2-3 years of crazy strengthening.
I predicted about 2x inflation as a best-case outcome a year ago. Worst-case outcome would have been serious structural damage, in terms of business bankruptcies, lost jobs, lost mortgages, etc.
Unless we get into a hyperinflationary cycle, we came out pretty well, economically.
Our public health response, on the other hand, was and continues to be a disaster.
I am now starting to wonder if the unrealized gains tax is the 'reversal' and the interdemensional checkmate on hidden wealth.
You're a monster.
What do you mean by "number of dollars approximately doubles in 2"?
I think OP was talking about monetary inflation. We nearly double the money supply so it should translate to a nearly double price inflation.
> it can’t just be reversed
I don’t know where you’ve gotten this idea from. The fed can destroy money just the same as it can create it.
You only have to look back to 2019. [1]
[1] https://www.investopedia.com/the-fed-continues-to-reduce-its...
Look at 5 year view.
What happens when the number of dollars approximately doubles in 2 years as it happened?
Do you think prices stay the same and everything is just 50% off?
Reality is that the current number is off by reality quite a bit, real number has to be much higher. It's just math and the worst part... it can't be just reversed.