The Federal Reserve has returned to monetary easing in an environment of elevated inflation.
It raises an important question…
If one of the steepest rate hike cycles in history couldn’t defeat inflation…
And the Fed can’t raise rates much further without bankrupting the US government because of the soaring interest expense…
How will the Fed EVER escape the trap of ever-increasing currency debasement?
I don’t think it will be possible.
It’s like being on a runaway train with no brakes.
When you put together the pieces to see the Big Picture, it’s clear that ever-increasing currency debasement is the inescapable outcome of the US government’s debt spiral.
The federal debt’s interest cost is already higher than the defense budget. It’s on track to exceed Social Security in the coming months and become the BIGGEST in the federal budget.
The US government will not voluntarily “abandon credit expansion,” as Mises puts it, because Washington is dependent on issuing increasing amounts of debt to pay for the ever-growing costs of Social Security, national defense, welfare, and interest on the federal debt.
That means their only choice is to debase the US dollar by ever-increasing amounts until, as Mises puts it, the “final and total catastrophe of the currency system involved.”
I believe rampant currency debasement will be the most important investment trend of this decade, and it will devastate most people.
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