Why do you so easily disregard the severe impact your theory would have on the price of imports?
Do you seriously believe that the USD will only depreciate in line with the percentage increase in the money supply?
The most important factor in determining the price of exchange rates in the FOREX market is that of expectations.
Fiscal irresponsibility on the scale you're advocating would lead to a fall in USD's value that far exceeds any increase in the money supply. It would basically become the next Peso.
How would US businesses and consumers who are reliant on key imports and products survive in such a situation??
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