How is this different than the economy as a whole? Look at seniorage and Milton Friedman's take on what caused the Great Depression. As money circulates in a fr

How is this different than the economy as a whole? Look at seniorage and Milton Friedman's take on what caused the Great Depression. As money circulates in a fractional reserve banking system it multiplies. The last guy holding the dollar is the guy who loses most. In times of exuberance that multiple is greater than 1 and in times of pessimism that number is less than 1 which is why consumer confidence is essential to the functioning of the modern economy. Start thinking of money more as a piece of information reflecting scarcity of supply/demand, and realize that the faster information moves the faster money will cycle increasing it's rate of growth. It's called an information economy for a reason, because the commodity from which we derive most of our value is information. This is largely why it doesn't matter that China is taking "our" manufacturing base. You can point to the importance of things like iPhones being manufactured in China, but for the economy as a whole the AppStore is far more important than the manufacture of the phone. As information bandwidth increases globally so does money supply.