While I don’t agree a gold standard will be the solution I applaud the attempt to write about solutions rather than just writing the usual meaningless wahh-wahh articles about “OMG there’s inflation!”.
And no, a FED rate hike or two or more is not going to cause hyperinflation, that’s silly. The Bond Market is in charge of the interest rates we all deal with every day, like mortgage loans and other consumer and business lending. The Bond Market is much larger than the FED and now that it is raising rate yields throughout the yield curve the FED has no choice but to follow. I predicted months ago the FED would move when the Bond Market started moving and not before. And here we are.
Gold looks a good trade right now for those experienced in that. It has to get to around $2,200 to reach its last high, so it’s got some room to run.
There is an easy solution to inflation. It’s worked every time:
* raise interest rates
* stop deficit spending
The challenge is this will push the country into a deep, but short term recession. Reagan did this in 1980, the current occupant of the White House is tissue paper to Reagan’s steel.