We often hear about the enormous amounts of US dollars across the globe and a number of so called experts have for years said there could be a flood of US dollars back to the US causing inflation. Some of these same experts were calling for a massive short squeeze of these foreign dollars causing a huge spike in the dollar. While of course, as the global reserve currency (not for much longer) there are huge amounts of US dollars globally. Both of the above arguments are incorrect. There hasn’t been and won’t be any short squeeze to cause the dollar to spike. There also isn’t going to be a massive return of dollars to the US, causing inflation. The inflation already exists. When dollars were created either, physically by printing them or electronically when banks extended credit, that led to inflation. The only thing that can happen to all of those dollars around the globe, is that no one wants them anymore and that is exactly what is happening now. Central banks and institutions as well as investors and individuals are getting rid of those dollars by buying gold. The rising price of gold, ie declining purchasing power of those dollars, is the inflation and it is happening currently and will continue to result in higher gold prices and reduced purchasing power of dollars. While the narrative is false, the bottom line result is basically the same. You could have had a flood of US dollars coming back to the US, if the dollar was still convertible into gold. That is what happened when Nixon ended the convertibility in 1971. Since that feature no longer exists, anyone holding dollars just sells them for gold. Similar, but with a significant difference. When convertibility existed, you got a guaranteed amount of gold promised in advance, now you get a rapidly diminishing amount of gold for each dollar, at least until that time when no one will part with their gold, for any amount of worthless dollars.