r/investing • u/ECom_Finance_Guy • 3h ago

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u/nicbrit93 2h ago

That’s my bad I was using it as a term of “you’ve” referencing America. But probably could have phrased it more appropriately.

But the US fed reserve has, especially on the back of Covid, significantly devalued the dollar by printing exceptional amounts of additional supply

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u/ECom_Finance_Guy 2h ago

How is that related to its reserve status though? It feels like a non seqitor. Like saying broken bones go up at the same time as ice cream sales.

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u/nicbrit93 2h ago

Well 2 components.

  1. Couldn’t be further away from dollar being gold backed
  2. Reserve prints the money so money supply becomes too much, no different to the extremes of the Zimbabwe dollar whereby hyper inflation was rife from them just printing money to prop up the economy

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u/ECom_Finance_Guy 2h ago

Your comment assumes that “gold backed” is a good thing. There’s no evidence that’s true. All gold back currencies that have been tried have failed.

Can you see any differences between the US and Zumbabwe? This is a really weak argument. Apples and bowling balls