I disagree. There are a number of benefits to inflation - particularly to those who have large amounts of debt on the books. Mortgaged real estate benefits greatly. Interest rates go up. Who stands to gain the most by decreasing the real value of loans and increasing interest rates?
> I was just pointing out that the USG isn't "backing" USD
In the abstract, nobody can back anything, because all you're relying on is their word. You could back a currency with a precious metal, but even that assumes the metal is intrinsically worth something (which has compelling arguments both ways).
The USG backs the USD fundamentally because they have power over the USD. They could instantly crush the value of the dollar if they chose to. Personally, I believe that if/when that happened, we'd have a great deal more to worry about than our wallets.
Creditors compensate by increasing interest rates on new loans, but that's, properly speaking, a response to expectations of future inflation, not a cure for past inflation.
> nobody can back anything
I can't tell if you're actually unable to understand the distinction between reserve-backed currencies and fiat currencies like the current dollar, or if you're intentionally bringing up irrelevancies to try to confuse the discussion. Your unwarranted personal attack earlier in the thread makes me want to assume the latter. In either case, shut the fuck up, because whether your ignorance is faked or not, you're not contributing to the conversation. You're just being an asshole.
You're suggesting that US elites are systematically long dollars and have the power to control the value of the currency, including overcoming coordination problems. If that were true, we'd be seeing dollar deflation. Instead, we've seen about eight decades of uninterrupted inflation. This means one or both of your premises are wrong. I suspect both.
As for the "risk", I didn't mean to suggest that USD is particularly risky, certainly not more risky than EUR. I was just pointing out that the USG isn't "backing" USD even in the sense of Bretton Woods.