The Dollar Demise

https://americanconsequences.com/kim-iskyan-the-death-of-the-dollar/ 

I've been predicting the death of the dollar for a long time -- when will the global economy pull the plug on the ailing dollar? 

And greenbacks are the world economy’s most important medium of exchange, unit of account, and store of value. If they don’t use U.S. dollars, it’s a lot more difficult – and expensive – for countries, companies, and people to buy oil or gold, sell toys or cars, or invest in hotels or bridges.

At a gut level we all understand this. Inflation is vastly understated -- look at your medical and insurance bills for example. Look at taxes on your internet and cell phone bills, and the increasing cost of the services themselves. Everything with few exceptions is rising in price, and it is rising faster than whatever you put in your savings. The government reports the inflation numbers, and they claim they do COLA (Cost Of Living Adjustments) for things like Social Security, military and government pensions, inflation protected bonds (TIPs) etc. Artificially keeping those numbers and interest rates artificially low is a way to heavily tax the masses without letting the "little people" know.

Put it all together, and 78% of all dollars that have ever been made, have been created over the past 12 months. (And… none of that, of course, includes the proposed $2 trillion infrastructure plan announced by the White House in late March.)

The federal deficit is forecasted to hit 15% of GDP in 2021, the biggest deficit since World War II. That’s compared with 2.4% as recently as 2015… and 9.7% in 2009, in the depths of the global financial crisis.

Debt, like most degenerative diseases, doesn't happen quickly, although also like degenerative diseases, when the end does come, that will be quick.  All of a sudden, Bitcoin or some other digical currency is very likely to replace it. 

Most likely is that the U.S. dollar continues to be nudged out of the ring. The other reserve currency options – euro, yen, renminbi, digital renminbi – may become more palatable in relation to a debauched dollar. And in time, bitcoin – or a future cryptocurrency standard-bearer – may also be used as a reserve currency.

When that happens (and it is inevitable unless policies drastically change)  the dollar will drop in value very quickly. Something that cost $1 will cost $1.50,  $2?,  $5? ... no real way to know.