Severe Reaction To Inflation Coming, Fed Will 'Chicken Out' of Tightening Cycle

"The response to inflation will be severe and dramatic like it was in the 1970's," once investors realize how much their purchasing power has been diminished, warns founder and CEO of Rule Investment Media, Rick Rule. We as a society have, "consumed and financed that consumption with debt that isn't backed with anything; that's the nature of inflation," he illustrates to our Daniela Cambone at this year's Swiss Mining Institute conference. "In a democracy, the spenders will always outnumber the savers," Rule continues. He says that the Fed is currently on the right track with their plan to quell inflation, however, they will most likely, "chicken out." Rule concludes that, "if we had a period of real interest rates it would certainly cure inflation, but it wouldn't cure inflation until it did amazing damage to various balance sheets." ⭐️ Join Daniela Cambone's exclusive community ➡️ https://danielacambone.com ➡️ Follow us on Facebook: https://www.facebook.com/StansberryResearch ➡️ Follow us on Twitter: https://twitter.com/stansberry ➡️ Follow us on Instagram: https://www.instagram.com/stansberry_research ➡️ Follow us on LinkedIn: https://www.linkedin.com/company/stanberry-research Chapters: 00:00 Where are we in this cycle of inflation? 4:01 What do you mean by "severe" reaction to inflation? 5:53 Who is to blame for the superinflation we’re in now? 8:00 Does inflation get fixed? 8:41 Is the Fed’s tightening strategy working? 10:24 Wouldn’t the Fed be concerned about suddenly raising interest rates? 11:59 Why is the ideal stock holding period five years? 14:03 How does an investor know their holding is worthless when the price falls dramatically? 15:47 Rule's final thoughts on investing