What if Inflation is out of control?

The majority of People are calling for a recession.
The debate is Soft Landing or crash Landing.

But who of you guys have followed what happens if Inflation is out of control?
The argentinian Merval Stock market Index has moved up 420% since beginning of 2023, not becouse their econemy is doing so well, but becouse their currency is victim to Inflation. Asset prices adjust to currency value.

Same thing with Iran, they had to fight with Inflation and their Stock market crashed up exponentially.
Who is prepared if the FED loses its Inflation fight? What if the US is causing more Inflation to pay of its old dept with Worthless money. Destroying it on purpose for their own benifit to replace it with something new in the end.

The Median Home value in 2000 was 119.600$, while just 23 years later it has moved up to 412.000$.
The federal Reserve have convinced everyone that 2% Inflation per year is a sign of a strong econemy, now we might have reached the end Game of the USD where things can move exponetially. Forget about manipulated year over year goverment Inflation data, we all feel and see the increase in prices, its not just 3-4%. More like 15-25% if you would ask me

Since 1933 the US Dollar has lost 92% of its purchasing Power, the FED has systematicly destroyed their currency for their own benifit.
The end of the US Dollar would be a exponetiall crash up in asset prices, while the majority is trying to call a recession.


If you would ask me, whats going to happen?
I wouldent be Suprised if the USA will cause more Inflation on purpose to pay their old depts with Worthless money. Thats their only way out.
Im prepared for both, the recession or the end of the USD. You Gotta think about how that would effect your trading.

But what is your prediction, can the USD lose its Reserve currency Status as other countrys Start to move away from the USD?

Dear Thomas,

Here are our expectations about the scenario you talked about.

In the hypothetical scenario of an unstoppable inflationary crisis in the United States, several profound consequences would likely ensue, impacting various aspects of the economy and society. Here is a summary of the potential ramifications:

1. Economic Uncertainty: Unstoppable inflation would lead to heightened economic uncertainty. Prices would skyrocket, making it challenging for businesses and consumers to plan for the future. Investors may lose confidence in the market, causing a decline in investments and economic growth.
2. Purchasing Power Erosion: One of the immediate effects of inflation is a significant erosion of purchasing power. As the value of the currency diminishes, consumers would find their money buying fewer goods and services. This, in turn, would reduce the overall standard of living for the population.
3. Interest Rate Pressures: To curb inflation, the central bank may raise interest rates. Higher interest rates can discourage borrowing and spending, potentially slowing down economic activity. However, this could also lead to challenges for businesses that rely on affordable credit for expansion and investment.
4. Income Inequality: Inflation tends to impact different income groups disproportionately. Those with fixed incomes, such as retirees on pensions, would face difficulties maintaining their lifestyles. On the other hand, individuals with the ability to adjust their incomes, such as high-earning professionals, might be better equipped to weather the storm.
5. Global Economic Impact: The United States being a major player in the global economy means that an inflationary crisis would likely have ripple effects worldwide. Trade imbalances, currency exchange rates, and international investments could be disrupted, affecting the interconnected global economic system.
6. Social Unrest: Persistent inflation can contribute to social unrest as people grapple with reduced purchasing power, unemployment, and economic instability. Protests and public discontent could rise, putting additional pressure on policymakers to find solutions.
7. Asset Price Volatility: Unstoppable inflation can lead to increased volatility in asset prices, including stocks, real estate, and commodities. Investors may struggle to accurately gauge the value of their holdings, leading to market turbulence and potential financial crises.
8. Policy Dilemmas: Policymakers would face significant challenges in formulating effective responses to an uncontrollable inflationary environment. Balancing measures to control inflation without stifling economic growth requires delicate decision-making and could involve tough policy choices.

In conclusion, an unstoppable inflation scenario in the USA would have far-reaching consequences, impacting not only the economy but also society at large.

But thankfully there are already some alternatives for the good old fiat cash - Tokenized Assets like Bitcoin or Ethereum.

We consider them as a better class of productivity assurance.

Best regards,
Amsterdamcapitalclub

So far, no. In future - maybe.
I mean, all these digital currencies we have nowadays came in the world not without any reason. I believe that in future there will be a chance for bTC and other cryptos to take leading positions as national currencies of certain countries, even though nowadays this scenario is hardly belieavable.
Today USd is still strong despite all the facts about inflation, inability of the government to regulate economy normally and so on. It's too expensive for countries to move away from USD today.

Since January 2020 the FED has printed nearly 75% of all Dollars in existence, who knows what the lag effects are? If it will cause a 30-75% Inflation or not?

Its a slow but stady process, the purchasing power of 1$ from the year 2000 is now equivilant to 1.80$ today, the money has nearly lost half its value in 24x years, slow enough for few to notice.

I dont See why it should stop now when things are clearly out of control, the FED cant raise rates becouse the USA would default, the intrest payments on current national dept would become bigger then tax revenues it self. (Just the intrest payments on dept)

Im saying all that becouse we as traders care about how that effects the markets, it can crash up, thats my Observation.

Im asking my self, how can this stop, why should the USD gain real value again? How can this be fixed? Becouse that would mean deflationary crash in markets. Asset prices would adjust lower to a stronger currency, even gold or btc.

If Inflation is out of control, the opposite will happen, markets will run up exponetially, the USD has only 7% of its original value left, from there things can get exponetiall. Im trying to identify are things fixable or not? Or does the USA even want to fix it? Do they need inflation to pay of old dept with worthless money?