Okay, you are right that there is competition with the USD: <i did not realize that there is an absence of competition in the world?> But it's competition in the same way that MSFT has operating system competition. While they enjoy a vast market share and powerful network effects, they can pocket vast profits.
MSFT's competitors can start up any time they like and have been doing so for decades. So far, MSFT continues to be world champion and is pocketing profits while the fun lasts.
Similarly, the USD does have swarms of competitors, but they are all minnows, or anachronisms, [like the naked Aztecs], so Uncle Sam and Uncle Al KBE and Big Ben are milking it for all its worth while the game lasts.
I meant that right now there is no effective competition - meaning that the USD owners [Big Ben/Uncle Al/Uncle Sam, not the current holders of the currency who might think they own the money, but don't], can pocket very large profits of control compared with what a serious competitor will allow them.
Pixelation profits from USD dilution are running at about $500 bn a year [give or take a bit]. That's serious money in anyone's book and it's free money, straight off the money tree, diluting existing holders of the currency, who don't care as much as they should, because they see only small inflation.
Mqurice |
