1/ Being disconnected from gold, the dollar could be multiplied without an immediate automatic effect on its value or on inflation, which would permit Americans to have their growing commercial deficits financed indefinitely by the rest of the world,
2/ especially thanks to the issue of Treasury Bonds. In fact, the massive demand for dollars has permitted Americans to accumulate extravagant commercial and budget deficits without suffering any negative economic effects from the debts for a long time,
3/ which such imbalances should normally have provoked. The result is that the United States can live beyond its means thanks to foreign capital, and, for at least the last thirty years, the American economy has lived off the rest of the world. .
4/ It fabricates a false growth, which provokes the regular increase of the stock indexes on the sole basis that money is accumulated in the investment portfolios, but which doesn't reflect any real economic devel. The machine runs by generating debts that grow automatically.
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