This is providing a massive amount of new dollars to bid for goods and services in the U.S. that suggests very strong price inflation ahead. In addition, these dollars, in addition to the dollars directly provided overseas, will also put downward pressure on the greenback on foreign exchange markets that will provide even more incentive for many global actors to ditch the dollar as the reserve currency. If the move away from the dollar picks up steam, the end of the dollar as a reserve currency may not be far behind.
Source: EconomicPolicyJournal.com: We May Be Heading Towards a Post-Dollar World
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Where will all those new “dollars” go if NOT into higher consumer prices (i.e., more “dollars” chasing fewer consumer goods)?
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