What is the chart actually showing? Dollar in $ makes no sense to me.

@unk
I agree with you theoretically, and I always recommend holding only as much currency as needed for monthly expenses. If most people would do that, the central bank had less influence. But I don't think it's as easy as you make it out to be. We get bubble after bubble in things that seem to be good assets, but actually aren't. Gold is the only "hands-off" store of wealth, and in many countries it's legally impossible or expensive to acquire. In case of emergency it will likely get confiscated.

The main problem with central banks, fiat money and government debt is the illusion of wealth they create. When the economic distortions can no longer be hidden/ignored, people always blame scapegoats. For example the Greeks are angry at the prospect of becoming poorer, while, in fact, they were never as rich as they believed to be. Would you argue that there is no "debt supercycle", and that for example the US deficit is no big deal?