To: 11th Commandment
Because as you know, dollars are only good in the USA which means somehow they are coming back... thus inflation.
Not true for a large fraction of it. There is a reason it is called "reserve currency." It's used for trade.
Black markets the world over accept dollars.
posted on 01/31/2013 12:24:55 PM PST
(Islam offers us choices: convert or kill, submit or die.)
USD is the trade currency, but ultimately those dollars for the purchase of goods, not trade, are only good in the USA. For example, Arab country accepts USD for oil. Then the invest in a hotel in another Arab country. The investors accept USD. They in turn by other investment asset in the USA.
Agreed the USD is the currency of choice for black markets across the world, but it too is subject to inflation. If the dollar loses value, purchase and exchange power is lost. Many smart investor watch the black market to judge true currency strength. So in the end, the idea that USD oversees mitigates inflation does not hold. I would direct you to this informative piece on inflation. The comments by Freepers are very good Link
posted on 01/31/2013 12:37:22 PM PST
by 11th Commandment
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