One of the most striking outcomes of the creation of counterfeit money is its ability to warp and reshape reality in peculiar and unexpected ways. Consider the Dow (not quite) reaching 27,000, million-dollar houses, and more than $13 trillion in negative-yielding debt.
These examples showcase just how far-reaching the effects of counterfeit money can be—creating countless distortions in the economy.
While asset price inflation may appear to be the most visible effect, it is merely a superficial aspect of the broader economic distortions caused by counterfeit money. The more profound impacts manifest in international trade dynamics, which exceed merely a significant trade deficit.
Currency wars, competitive devaluations, and the disastrous race to the bottom are all repercussions of the intersection between counterfeit money, foreign exchange markets, and global trade. This environment also fosters retaliatory tariffs and trade conflicts that stem from the dishonesty and trickery of fake currency. Yet, these issues are only the tip of the iceberg.
To gain a clearer understanding of the full implications of counterfeit money, we must take a brief detour. A world influenced by counterfeit currency is undoubtedly peculiar and perplexing. In this landscape, the shortest distance between two points is not always a direct path. Continue reading
