RESET: If the market crashes, and inflation runs rampant, how do we adjust our investments?

[right way right]

Rob pot stores instead of banks....they have all the cash.

[rb22982]

At some point interest rates will have to rise, when inflation is 7-10% or higher, loaning money at 2% makes no sense.

Inflation is 5.4%+ and rising and US bonds are at 1% today and mortgages are at 2-3%. I don't think you realize the Fed Res is simply printing money to buy US Bonds and forcing large banks to buy the rest (and with 12:1 leverage, still not a terrible deal for the primary banks)

If rates don’t increase the rate of inflation will be even worse than it would be otherwise....

Absolutely, you can see it now. Inflation is effectively the middle class tax increase that's needed by the federal government but can't pass the traditional way.

[srmanuel]

I do realize how much money is being created by the Federal Reserve it’s irrational behavior and over time irrational behavior will fail and the longer it takes to fail the more painful it will be.

It’s simply irrational to think managing the world’s largest economy from Washington with money being created out of thin air can’t go on forever

[rb22982]

It’s the only choice they have even if its not a good one. Interest rates rising materially at all = US gov collapses. Fed Res pulling back and allowing free market = market collapse and deflationary spiral = US gov collapse. It’s not hard to do the math in excel with the size of our debt, our GDP and how much possible taxes they can get even if they raise them on the rich and corporations and realize there are no good options - the time for that was to truly let the system cleanse and collapse with a mild depression in 2008. It would be catastrophic at this point.

[srmanuel]

I agree with what you are saying, all I’m saying is eventually it will fail because it’s irrational over time.