Can you explain how the decline of the dollar allows these currency traders to make all this easy money you think they make?
Do the vast majority of the people gain anything when the dollar is devalued?
Anyone who bought hard assets with debt gains.
No, they just end up giving more of their earnings for goods and eventually wages NEVER keep up with inflation.
Historically, wages always beat inflation.
“Can you explain how the decline of the dollar allows these currency traders to make all this easy money you think they make?”
If countries use gold or hard assets in trade, an ounce of gold is worth the same no matter who stamped it. A barrel of oil is worth a barrel of oil. Did the cost of oil REALLY go up or did the value of the US dollar go down? Does the AVERAGE person benefit when oil is $80 a barrel vs $35 a few years ago?
But who is to say how much a rupee is worth in dollars? Currency traders buy currencies that are going up in value and sell currencies that are going down. In the past several months they have been buying nearly anything except US dollars. When the dollar goes down, they trade their foreign currencies back for MORE dollars than original and then purchase hard assets before the devaluation trickles down to the rest of us. Have the produced ANYTHING of value?
“Anyone who bought hard assets with debt gains.”
Eventually, yes. During hyperinflation those with high debt can pay it off with worthelss paper money.
“Historically, wages always beat inflation.”
UNTIL! Until the people who print the money print too much of it, too quickly and start the rapid decline into hyperinflation.