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What’s the counterargument to all this doom and gloom?

I think it was a footnote in The Intelligent Investor (Graham) that mentioned inflation could be seen as a benefit for government, by reducing the value of the national debt.

Now official inflation figures are still quite low (around 2.5% from Bureau of Labor Statistics [1], unless I'm reading it wrong or not looking at the right chart), but from personal experience I think these figures are being lowballed significantly. Compare for example the cost of buying a condo in a major city or the price of a cup of Starbucks coffee - both have easily outpaced a 2.5% increase.

[1] https://www.bls.gov/charts/consumer-price-index/consumer-pri...

Home values are extremely inflated from the low interest rates. Credit became so cheap so people could “afford” much more expensive homes. As rates go back up, housing prices SHOULD fall. I worry they won’t though and people will no longer be able to own a home unless they are pretty wealthy.

House prices are sticky. They easily go up when interest rates fall. But when interest rates rise, housing usually remains stubborn until the cycle collapses.

It did take 5-6 years, but prices in Spain fell ~40% off their highs reached in 2008

As always, some variation of “it’s different this time.”

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