Although commodities are *priced* in USD, their trade does not *only* involve USD. What you're saying would be true if USD were the *only* currency in the world.
The world is *not* Zimbabwe, because all the central banks in the world are NOT inflating their currencies at the printing press.
For you analogy to be comparable:
the *U.S.* is Zimbabwe,
the Fed is Mugabe,
U.S. citizens are "the rest of Zimbabwe",
the rest of the world is the rest of the world.
You're rational, but it's clear that there is some kind of misunderstanding of how international trade and finance operate.
- Devaluation of USD is *not* fine because although they are *priced* in USD they are produced and sold by foreigners who want to be paid in their *own currency*. This means the Japanese take the USD they received on the sale of their cars and Nintendo Wii's and sell them to take home Yen. The Koreans take the USD they received on the sale of their cell phones and LCD tv's and sell them to take home Won. The Vietnamese sell the USD they receive from the sale of their rice to take home Dong.
Although commodities are *priced* in USD, the trade ends with somebody selling their USD for their own native currency.
- World currencies do not inflate when USD inflates. Inflation of a currency is *directly* caused by the over-supply of that *particular* currency. If the USD inflates by the printing press, Thailand's Baht will rise in relation to USD, because the supply of Baht will be lower than USD on a relative scale.
- The world is not like Zimbabwe, because supply of world currencies are not being inflated by the printing press, as is being planned in the U.S. at the moment.
For a comprehensive peek at what China is actually thinking and saying *right now*:
Pay special attention to the second half of the article.
Also, google "fiscal policy", "monetary policy", and "bond pricing"... and learn how a bond's fair market value changes with interest rate increases and decreases.
For an even better source, one that clearly outlines and explains the links between currencies, government debt, international trade, government bonds, the Fed, interest rates, and commodity prices... buy a used copy of the Economics portion of the CFA Level 1 series of texts (no older than 2007) off ebay or craigslist. I think a guy like you will absorb the material in no time flat and gain a new level of understanding of how international trade and finance operates.