He says consumers are not fully aware of the long-term implications of these increased costs. In his opinion, when the consequences are realized, more chaos is likely to come.
“Inflation is not going anywhere,” Rule says. “People themselves understand very well what the inflation rate of 8.6% means. But this has not yet affected their standard of living. When that happens, I think their reaction will be violent and dramatic.”
According to the expert, the strategy of the US Federal Reserve to raise interest rates is the right way to fight inflation. However, he believes that the Fed will eventually give in to public pressure and retreat from its plan: "They will have to change course because the political demands will be too powerful."
Rule concludes by urging people to improve their own financial literacy in order to succeed in these uncertain times: “The most important investment you can make is an investment in yourself. Develop the ability to conduct at least a cursory analysis of securities. Acquire sufficient knowledge of the financial markets.”