> The same number of dollars will still settle next months mortgage bill, or tax bill regardless of what it may or may not exchange into Euros.
If nobody wants dollars, then to import things it's necessary to send more unwanted dollars, so the exchange rate does up, so everything imported is more expensive, so you have inflation, so the interest in the mortaje goes up, so you have to pay more.
[Hi from Argentina! Been there, done that, got a pile of worthless bills as souvenirs.]
> Where is the excess Argentinian beef scheduled for the USA going to find a market?
The offer is elastic too. A previous government added too many task and restrictions to the export of beef, so the producers sold the young cows instead of letting them grow to get more mothers. After 2 or 3 years the numbers of reproducing cows was so low that we almost had to import beef from Uruguay. IIRC the land was converted to soy farms, because exporting soy had a lot of taxes but not as many as beef.
"You will have higher prices because stuff you buy is more expensive."
Why? Why won't the supplier have lower income because they have no other alternative than to sell for the same USD amount as they did before?
Why is the supplier always the price setter? Can you always charge your customers anything you want to and they keep buying?
The customer is king, but not when FX is involved? How does that work?
"What do you think inflation is?"
It's a general rise in the entire price range. If the price of eggs goes up, but your wage didn't then that is a redistribution of scarce resources, not inflation.
If nobody wants dollars, then to import things it's necessary to send more unwanted dollars, so the exchange rate does up, so everything imported is more expensive, so you have inflation, so the interest in the mortaje goes up, so you have to pay more.
[Hi from Argentina! Been there, done that, got a pile of worthless bills as souvenirs.]