/biz/ - Business & Finance

>>30276053
>>30276127
Let me school you two. The federal reserve funds rate used to be 10%, 5% and even 20%. But a few years ago the market dumped with a few basis point increases. The market has gotten used to very low rates in the 10yr and the reserve funds. Increasing rates will stop corporations and consumers from taking more loans. The problem is everyone is filled with DEBT. Most people and corporations cannot take any more debt even at these historically low interest rates. That means when interest rates increase there will be even fewer people and corporations that can take a loan. Loans, government spending and treasuries are how we increase the money supply. Paying back loans and taxes is how we reduce the money supply. If no more debt is being taken then the money supply wont increase as quickly. If people are only paying their debts and food then do we get hyperinflation? NO. What does this mean then? If the powers that be want to prevent hyperinflation then they will let the long term bonds go up. Anything at this point is better than hyperinflation so they will let it go up. We will get short term inflation because of the federal government stimmies but because interest rates are rising and taxes WILL be increased. We will get deflation after the short inflation burst. The FED and Democrats CANNOT. AND I MEAN IT. CANNOT afford hyperinflation. Every single person will blame these two for the hyperinflation if the FED implements YCC and Yellen continues to spend like a woman at Ross.

.t Link hodler