Currency devaluation doesn't just happen against other currencies. It also happens against particular goods/assets (another currency is just another good/asset).
If I have $10 and 10 goods, and suddenly have $1000 and still 10 goods, each good should come to cost 100x more. Or to say it backwards, the $ becomes worth 100x less...
To bring CPI into this, the reason we don't see common inflation metrics such as food/gasoline spike, whereas assets suck as stocks do, is more a matter of supply/demand for the corresponding goods than anything else.
Said differently: if food was the only good there was, and we suddenly doubled the money supply, food would in time come to cost double.
However the market consists of many more things than what CPI looks at (which is why it's a bad measure of inflation). Stocks being one of such things. Real estate another. Right now, demand for stocks is higher than demand for food, and given the more money available, naturally we see stock prices rise, but food/gas prices staying relatively the same...
To bring CPI into this, the reason we don't see common inflation metrics such as food/gasoline spike, whereas assets suck as stocks do, is more a matter of supply/demand for the corresponding goods than anything else.
Said differently: if food was the only good there was, and we suddenly doubled the money supply, food would in time come to cost double.
However the market consists of many more things than what CPI looks at (which is why it's a bad measure of inflation). Stocks being one of such things. Real estate another. Right now, demand for stocks is higher than demand for food, and given the more money available, naturally we see stock prices rise, but food/gas prices staying relatively the same...