Quote:
Originally Posted by GGG
Lots of investment needed and lots of raw materials. As long as the global economy falls with the dollar low interest rates should not be punative
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That's why I say the B.O.C. is in a tough spot. They're being forced into a rate cut to stimulate investment at a time when they are well aware the inflation on a lot of essentials will occur, plus with job losses and a contraction in the economy. But like Covid...the very wealthy will be able to put a couple laps on the field here in terms of their personal net worth vs the mean.
But I am very confident that the only balance to lower than desired interest rates brought on by an unexpected crisis will be a follow up period where they need to raise them quickly and keep them high to try and get things balanced. So that's why I think things will be pretty turbulent for some time. So long as the U.S. is under control of an Orange lunatic who might be a Russian asset, there will be no balance or stability.