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RE: The USD is like a fence that keeps debt-slaves inside a labor camp: It "must" not collapse
Obviously, the Elite can't allow this (dollar collapse) to happen: The dollar is like a labor camp wall. The wall cannot be allowed to collapse, lest the prisoners escape.
There's another variable to consider here. Governments aren't always the same thing as "elites," however, they are at a minimum highly interconnected.
Governments are the world's largest debtors - the ones who benefit most from a devalued currency. I believe inflation is the most politically expedient path forward. I wrote a related blog post last week that seems to contradict some of what you are saying. I'd like to get your thoughts on it.
World governments (perhaps with the exception of the USA and a few others) have two types of debts. Internal (in national currency) and external (in foreign currency). As far as their internal debt is concerned, they prefer their internal currency to have high value because the alternative (too low a value) will create social friction if the printing gets out of hand. But it is also useful to have a highly valued internal currency because then the rate of external debt to local GDP is smaller. If the national currency collapses, then the external debt, denominated in foreign currency, strangles the local economy.
For the US things are somewhat different because it doesn't need to make these tradeoffs, in a sense...
As for the blog post, I notice this point in particular:
The short answer is that hyperinflation is not the outcome of the above scenario. It's just plain-old "inflation". You'd need to print a massive amount of money on a continuous basis to get that kind of result. I've elaborated on the possibility of hyperinflation in an older post of mine, which is actually a pretty long read, over here: https://steemit.com/hyperinflation/@alexgr/hyperinflation-dollar-collapse-and-precious-metals
Thanks for your reply. In that quote, I was using the term "hyperinflation" in a relatively loose way. Whether it was in that post or the comments, somewhere, I talked about how as inflation gets higher and higher, it becomes less politically expedient because public outcry will grow rapidly. I'll read that post when I have more time later and get back to you.