@btwwhichonespink,
'Yes partly -ve interest rates, possibility of government stopping you removing savings from the bank in a crisis, hyperinflation (lots of noise about rising inflation from people like Michael Burry).
Actually Warren Buffet liquidated a vast amount of stocks (inc. aviation at the start of covid!) and invested in gold. He has been adamant his whole life you can keep your stocks and always recover over the long term so people took that as a significant warning. He isn't exactly your typical 'flight to gold' investor.
You do have to wonder why the government haven't worried too much about blowing hundreds of billions of pounds on Covid, much of it wasted. Almost as if the amount won't matter afterwards.'
Warren Buffett bought about $560 million of a gold stock, which sounds a lot, until you realise that is less than 0.25% of the Berkshire Hathaway portfolio. He has already liquidated this investment.
In the UK, interest rates are set by the BOE independently, trying to achieve an inflation rate set by the government, which currently sits at 2% and is very unlikely to change.
If we did get inflation, which I suspect we might, the BOE would be forced to counter it by raising interest rates, with fairly catastrophic effects on the housing market and the economy.
We got here by not including asset prices (such as housing) within the inflation target. So, when there is low inflation and interest rates, people are happier to accept lower returns and so stocks and houses look comparatively cheap. We are in a bind now, though, as when interest rates rise (as they will) we could see a catastrophic sell off.
What won't happen is an acceptance of inflation with no monetary policy lean against it.
So. no 'great reset' (at least in the terms it is mostly used here) or deliberate hyperflation, just an inertia to counter rising asset prices by those who benefit from them.