The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33 percent over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level.
Regular readers will know that I believe that the dollar in its present form is extremely unlikely to exist in twenty years, due to the systemic fragilities of a system softened up by forty years of unrestrained credit creation, securitisation, (including over a quadrillion dollars of derivatives), and a free lunch of Arabian oil and Asian goods rolling off the printing press.
Past performance shows the only way is down, down, down.
After all, the FOMC central planners determined long ago that deflation — a natural phenomenon that has occurred repeatedly throughout history, and which actually has a useful function of liquidating bad businesses and debts — was bad, and that they were going to print, print, print ’til it was eradicated.
Does anyone else think that there might be things worse than deflation?
Like — oh, I don’t know — currency collapse?