Thank you for the detailed explanation. Yes getting a loan in USD abroad seems like a bad idea if you are living somewhere that loses vs the USD! Same reason why you dont wanna owe in BTC!
Well, more broadly, I have often thought about banks creating inflation more broadly, as when you bring the bank a physical dollar and deposit it, the physical dollar is in one of their vaults, and it then a 2nd credited to your account as a digital dollar, AND they lend out a large fraction of the same dollar, if my understanding is correct. But I do not have a detailed understanding of the banking system or the Fed.
But are you basically saying that the strengthening of the dollar causes more of other foreign currency to be tied up due to the need of saving a higher % of income to repay debts, and that is what is causing problems, or am I misunderstanding?
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