It’s going to take high interest rates to kill raging inflation, but they’ll also kill the overly indebted economy. From MN Gordon at economicprism.com:
Do you own a house? Do you rent?
How you answer these questions likely influences your perception of inflation and the economy.
But what if the forces driving your perception are about to reverse…thus, standing your perception on its head?
We believe big, earth-shattering changes are under foot in the credit market. A seemingly firm foundation may soon give way like liquified soil following an earthquake.
Where to begin…
Many investment gurus in the early 1980s were predicting the future while projecting the past. After a decade of raging price inflation, the popular dogma was to pack one’s portfolio with gold coins, fine art, and antiques. This was the proven, surefire way to preserve one’s hard earned wealth.
The United States, it seemed, was about to go full Weimar. Howard Ruff, in his investment newsletter The Ruff Times, was predicting the dollar would soon turn to hyperinflationary ash, like conifer trees in a California wildfire. It was inevitable. And imminent!