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An expansion of the Diabetes Awareness In November We Wear Blue Pumpkin Shirt money supply does not equal inflation. Inflation is dependent on velocity and GDP. That simply means bondholders will continue to get paid what they are owed. It seems like you’re imagining that every x number of dollars put into circulation means. That every store owner in America will magically increase their prices like it’s a law of physics. A real risk of inflation comes with people becoming willing to spend more money on fewer resources. That’s also assuming the US dollar still continues to be the world reserve currency and/or doesn’t lose confidence.
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I’m sure we’ll start a Diabetes Awareness In November We Wear Blue Pumpkin Shirt a few wars before that happens. Yes, if suddenly no one is interested in exchanging their wealth for US Dollars and no one wants to live in the United States where they are forced to earn USD to pay taxes then we will have a problem. The thing is bonds are a safe harbor asset, so when the market goes to shit, people move to bonds. So in other words, bonds move the opposite of what you would expect for any other type of investment.