- The president’s true believers are convinced he’s going to make them millionaires with Iraqi currency.
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It's the kind of thing that really makes you wish macroeconomics was a required class in high school Currency inflation is an instrument used by central banks to dissipate their internal debt. If I have a billion dollars worth of foreign currency and I owe two billion dollars worth of pensions, I double my money in circulation and make my pension obligations. Of course, all my pensioners are now getting half the value but fuck them, right? And my foreign debts haven't changed because they're probably denominated in the currency of whoever I borrowed them from but hey - now that I've got the pensioners taken care of, I can focus on getting foreign governments to deal with me again by stripping three zeroes off of my money (Mexico 1993) or twelve zeroes off my money (Germany, 1924) or 29 zeroes off my money (Hungary, 1946). Everybody owed money in my country is fucked - contractors, pensioners, banks, you name it - but I'm able to three-finger-salute my economy and start over again. It seems like the Dinar camp is pointing at currency devaluation and equating it with hyperinflation. Their golden example is the Kuwaiti Dinar, which was deliberately annihilated by Iraq during occupation and restored to its original value once the Americans invaded six months later.
I have a broad range of old Hungarian currency I collected when I lived there. Lovely notes; terrible story. ==== The Iraqi Dinar thing is another example of people (Americans) falling for a simple story, without understanding the background/nuance. Now, in Trumpistan, taking action on little information is lauded, regardless of the outcome. Every rush decision he and his followers have made, has failed to pan out in the end, and yet is trumpeted as another win. This house of cards has a maximum height it can reach. And the inevitable collapse will only further disenfranchise the gullible and credulous, who are almost universally already disadvantaged, or living in areas where "other options" simply don't exist. The collapse is gonna be seriously ugly.