though not active in the economy - does not devalue the relative value of money, and create rise in the demand for real stores of value?
In the long run it certainly does. In the short term you'll obviously see fluctuations. Also, remember other central banks are devaluing their currency too. If their currency devalues at a higher rate than the Fed the net effect is a stronger dollar especially where we are direct trading partners with those countries under those central banks (bank of china, japan, ECB).
I'm sure you get a much more informed answer form the likes of Russian, Poodle, Fizzle, Flask, Fenton, or Benny, but there's my $0.02.
This post was edited on 2/20 at 9:12 am