As an uneducated schub, I have only a limited grasp on macroeconomics. Can someone help me out with this?
As I understand the US economy right now…
If the interest rate goes up, the Federal budget is fucked because the payment on the debt will be unmanageable.
If the interest rate doesn’t go up, inflation will runaway and eat the value of the dollar until it is worthless.
Is this correct as far as it goes? What is the most likely outcome? The desired method of fixing this? The timeframe for the shit to hit the fan? If I do have this right, is gold the only safe haven?
So what does cause runaway inflation?
When it’s a failed country that doesn’t produce much if any thing.
In this case when currency goes down, its products become cheaper to export but there is not much available for export anyway.
There could be other reasons too like if a country is at war and is depleting its resources so fast.