Between a rock and a hard place
Apr 11, 2024
Inflation is back on the rise and the market is now expecting the Federal Reserve to delay rate cuts.
The Fed basically has two choices: lower interest rates and accept higher inflation or keep interest rates higher and tolerate intolerably high debt servicing costs for the US treasury.
Beyond magical thinking, simple arithmetic dictates that this dilemma is only going to get worse over time.
Salvation could only be delivered by a tidal wave of broad economic growth, driven by a disruptive technology like AI.
Everything else is hot air.
The most likely scenario now is that over time, the US Dollar and every other Fiat currency will accelerate their collapse in value against real assets.
