Why a $10 Trillion Fed Print Won’t Stop a 2008-Style Crash
Why a $10 Trillion Fed Print Won’t Stop a 2008-Style Crash
Danela Cambone: 5-17-2025
The next decade could bring a dramatic shift in the financial landscape, with the U.S. dollar potentially losing a staggering 75% of its purchasing power.
This stark warning comes from Rick Rule, president and CEO of Rule Investment Media, who believes this erosion is a stealthy mechanism to address the nation’s massive $100 trillion in off-balance-sheet liabilities.
In a recent interview with Daniela Cambone on ITM Trading, Rule draws a chilling parallel to the 1970s, a period marked by rampant inflation. He notes that back then, the Federal Reserve, under immense political pressure to stimulate economic growth, kept interest rates artificially low despite soaring inflation.
This eroded investor confidence in the dollar, ultimately triggering a meteoric rise in gold prices.
Rule believes history is poised to repeat itself. He anticipates the Fed will succumb to similar pressures and “attempt to ease monetary policy and lower interest rates again.”
This, he argues, will be the signal the gold community has been waiting for, a clear indication that “massive inflation is on the way — that the game is truly on.”
The implication is clear: the Fed’s potential actions, while seemingly aimed at short-term economic relief, could inadvertently trigger a period of significant inflation, drastically reducing the dollar’s value and potentially benefiting assets like gold that are traditionally seen as a hedge against inflation.
This alarming forecast raises crucial questions for investors. How should one navigate such a turbulent economic environment? How can you protect your wealth from the potential devaluation of the dollar?
Rule suggests that understanding the current financial situation is paramount, and strategic portfolio allocation is key to weathering the potential storm.
The interview with Daniela Cambone delves deeper into these strategies, offering insights into how to position your investments to not only survive but potentially thrive in a future where the dollar’s purchasing power is significantly diminished.