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Jerome Powell's Dilemma: Inflation, Debt, Bubble, & Reserve Status of the USD #29

The USD-led global financial system faces 4 major challenges in 2022. I present arguments that besides the aforementioned assets, housing will crash in the coming years. Energy and precious metals may be the good sectors to look for safety.
Published by Dr Jiulin Teng on 13 Mar 2022 · Updated on 13 Mar 2022
Keywords: cryptocurrencydrjlt-economicsfederal-reserveusd
Hero Image for Jerome Powell's Dilemma: Inflation, Debt, Bubble, & Reserve Status of the USD #29
The USD-led global financial system faces 4 major challenges in 2022:
  1. High and growing inflation, the result of decade+ QE.
  2. High levels of debt, both governmental and private, the result of decade+ recklessly loose monetary policy.
  3. Giant everythingBubble, best represented by NFT, crypto, and "hi-tech" "growth" stocks with 1000+ PE
  4. USD reserve status exposes a potential for "reverse flow" of exported inflation.
I observe that the Federal Reserve could:
a. Increase interest rates to untenable levels to control inflation, thereby protecting USD's reserve status but causing severe deflation in the speculative markets.
b. Increase interest rates moderately in an attempt to keep things going "forever", risking USD's reserve status.
I present arguments that besides the aforementioned assets, housing will crash in the coming years. Energy and precious metals may be the good sectors to look for safety. No specific investment advice is given or intended.
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