Quote:
Originally Posted by amorak
Interest rates =! Oil prices. Commodity prices swing with a lot of volatility, that's a known fact. Interest rates don't, apart from that ridiculousness we call the 1980's.
I cannot see us going over 10%, even if all the stimulus related hyper-inflation concerns many pundits have talked about come true.
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I didn't actually say interest rates = oil prices??? I was alluding to the fact that rates rising to 10% wouldn't be as crazy of an idea as the thought of 33 dollar oil in December of 08.
I'm very curious as to why you think interest rates would stay below 10% if we did incur hyper inflation? Based on what? That's what every central bank's real mandate is in the world, is to control inflation. The one real tool they have to do this is by controling interest rates. So how would they cool inflation if they couldn't raise rates over 10% should inflation hit say 12 percent???????