- The Fed finds itself between a rock and a hard place: either it keeps inflating or the whole confidence-based valuation of financial assets collapses. Either it raises interest rates or the dollar collapses.
- The lessons from the past have taught us that central bankers only notice a bear market threat belatedly, so that if the stock market is topping out, it will have to fall significantly before the Fed acts to support it.
- History, as well as logic, tells us that the best performing asset in a currency collapse is sound money, because that is what eventually replaces state-issued currencies.
For further details see:
Inflation, Asset And Consumer Prices