The thought seems to be that prices of everything are high, because the dollar itself has lost value. Makes sense. The conclusion then being a crash. But why? If the dollar is worth less and stops devaluing so badly, we'd just expect a stop in growth rather than a crash. Or are you projecting a strengthening of the dollar rather than just stabilization?
I'm still not sure why anyone is surprised by a devaluing of the dollar -- that's literally what the monetary kooks in the current US administration are on record as wanting to cause.*
Thought process goes: (1) devalue dollar, (2a) make basic US industry more globally competitive, (2b) devalue US debt to "solve" it without having to implement
austerity, (3) stronger US industry
Given that equity nominal values (read: future profits) will grow (to balance out the decreasing fiat value), purchasing power / wealth holds something close to constant and market numbers go up (which keeps voters from becoming unruly).
The only people who really get fucked are (a) people who aren't invested in the stock market (read: poor), (b) fixed income folks (read: retirees who will be dead before it fully plays out), and (maybe c) labor (if wage growth doesn't keep pace with purchasing power loss).
It's not the worst economic-political plan, other than the fact that no one is being honest with the public about it and some idiot ALSO picked the same time to drastically decrease the domestic labor supply (by sharply decreasing immigration and mildly increasing deportations) and increase tariffs. Both of which make completely offshoring labor more attractive.
* See also why Trump has such a bug up his ass about the Fed, as this becomes a lot harder if they don't play ball. Say, by following their mandate to fight inflation...
The thought seems to be that prices of everything are high, because the dollar itself has lost value. Makes sense. The conclusion then being a crash. But why? If the dollar is worth less and stops devaluing so badly, we'd just expect a stop in growth rather than a crash. Or are you projecting a strengthening of the dollar rather than just stabilization?