Spot the error

[Smiling_Dave]

Ben Bernanke: If somebody has their wealth in dollars and they’re going to buy consumer goods in dollars - it’s a typical American - then the decline in the dollar, the only effect it has on their buying powers, it makes imported goods more expensive.

I see two flaws.

1. Imported goods are a HUGE amount of what Americans buy.

2. The way the dollar is devalued is not by some decree. After all the dollar and all currencies are subject to supply and demand like everything else. The dollar is devalued by printing more of it. [Jonathan Catalan’s latest post in Mises’ Daily taught me this].

So that devaluing the dollar= printing more dollars= inflation= price of EVERYTHING goes up.