things are looking horrifying. everything is surging out of control in terms of prices, interest rates are way too low to do anything, and they can't go too high or else America will default on its debt, meanwhile my portfolio is down 45% YTD and flight to safety such as bonds are getting hammered. That's a large part of it. It wouldn't be so bad if bonds were helping but they're not. my hedges are failing due to interest rates, inflation is cutting into every aspect of my life, America might default on its debt, this might be another 2008.. what the hell do Americans do? forget the stock market at this point. what the hell are average Americans going to do when the dollar is more useless day-by-day? when countries have less faith in the US dollar, resulting in average Americans having less faith in the dollar?
literally:
- Powell is playing chicken with the market and interest rates. he is obsessed with the stock market, but everybody now knows he needs to raise interest rates by at least a point, and should have done so already, but…
- he can't raise them too high or else America will be forced to default on its debts due to the national debt being sky high, but…
- inflation is absolutely raging like a category 5 hurricane and everybody is getting pelted due to these things, but…
- fighting inflation seems highly difficult, if not impossible without causing catastrophic damage to America with unforeseen consequences
whats going to happen when the prices of transporting goods is too high and consumers can't even afford the prices, when flight to safety is completely out of wack, and the fed is powerless to effectively fight recessions due to interest rates already being near 0, but can't raise interest rates aggressively due to the risk of defaulting on debt? like wtf is going on with this country man. it feels like this country is on the brink of a possible 2008 style collapse again. the saving grace of the 80s was that they could afford to aggressively fight inflation.
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