[generalpass]

> That's a retro thinking back to the era of the bond vigilantes. That's gone. There's so much stuatory purchases of t-bills that will outweigh any inflationary pressure from QE4. The demand for t-bills was almost insatiable _before_ this mess. Now, it's even more.

> T-bills will do just fine despite any outward appearances of inflation. BTW, would rather load up on real estate than "precious" metals. Gold is a relic from a bygone era.

It is further back to the inflationary period of the 70s, which is the last period that there was a mass flight from dollars due to the rate of CPI increase.

Investopedia[1] states the problem related to T-Bills rather well:

> Treasuries also have to compete with inflation, which measures the pace of rising prices in the economy. Even if T-Bills are the most liquid and safest debt security in the market, fewer investors tend to buy them in times when the inflation rate is higher than the T-bill return. For example, if an investor bought a T-Bill with a 2% yield while inflation was at 3%, the investor would have a net loss on the investment when measured in real terms. As a result, T-bill prices tend to fall during inflationary periods as investors sell them and opt for higher-yielding investments.

So when the CPI is going up and dollars are being used to bid up the price of physical assets, who is buying T-Bills?

[1] https://www.investopedia.com/terms/t/treasurybill.asp

[scurvy]

You're comparing stagflation double digit interest rates from the 1970s to today? We'll be in a declining or low rate environment for the rest of our lifetime. We'll never see double digit interest rates again.

Gold is useless.

[generalpass]

> You're comparing stagflation double digit interest rates from the 1970s to today? We'll be in a declining or low rate environment for the rest of our lifetime. We'll never see double digit interest rates again.

> Gold is useless.

I am making the comparison on the worst-case assumption that $1000 is sent to every American every month (extended lock-down of the economy will still require people to have some measure of income or they will riot in the streets), so that's $330 billion pumped into consumer goods sectors every month. Your position is that this will not cause CPI rate of increase to go up?

I just reread my post and I can't find the word "gold" anywhere in the post and I am assuming that your claim is to be amended to state "Gold is useless [as an asset]" since it is one of the most useful minerals known to mankind. Where do you get this from?

"Physical assets" can be anything physical: a building; a lot's worth of used cars; a warehouse full of Play-Doh, etc. When people don't want dollars or financial assets, they will replace them with whatever seems like a better deal.