Are tens of millions of Americans about to experience devaluation of the dollar?

The issue is the U.S. government keeps spending too much money, and the Federal Reserve system keeps buying that government debt to issue more new money for the U.S. to spend.

At some point there's the danger investors and other countries are going to want to get out of all that debt they own from the U.S. And when they want to cash out, the U.S. is going to have to suddenly come up with the money.

This will either result in high inflation, ruin the country's credit rating which would require them to pay much higher interest rates on debt in the future, result in high taxes and spending cuts, or some combination of these together.

As for exactly how much inflation there would be, I read a few years ago the amount of the national debt was 20 times the amount on the Federal Reserve's balance sheets, so just hypothetically, if the Fed was to attempt to print its way out of all the national debt it would result in 2000% inflation, likely overnight. (And that would still damage the country's credit rating anyway)

 

Too much spending is one issue..... yes.... but compound interest over time is by far the greatest cause of what is happening.

Moses / Moshe deserves a lot of credit for coming up with the JUBILEE system of forgiveness of debt.........
because compound interest can make us appear bankrupt, drive the world into a recession or full fledged depression..... and during those times shares in companies can be purchased for a fraction of their real value by the extremely wealthy who are able to negatively influence central banking policies.

Perhaps one of the easiest ways to understand the problems in the Federal Reserve system is to contrast it with what we did up here in Canada from 1940 - 1974:

https://www.michaeljournal.org/arti...ce-our-country-debt-free-say-three-economists

 

But America's workers are still some of the most productive on earth and now that President Trump has increased the domestic market.......
the USA economy should boom!

 

Are they? That depends exactly how you define 'productivity'.

 

I can't answer that, but I did do a very basic calculation a few years ago that if the US Federal Reserve Bank decided to print its way out of the national debt it would result in 2000% percent inflation (i.e. the dollar would become worth 20 times less).