To: xzins
However when interest rates rise two things can happen: we can see the start of inflation from higher prices from higher interest cost and we can also see the long beginning of a recession because the higher interests costs effect business and cause lower profits and eventually more layoffs. Cause and effect are being confused here.
Higher interest rates are the result of (price) inflation. Not the effect.
3 posted on
03/20/2014 9:02:40 AM PDT by
NeoCaveman
(DC, it's Versailles on the Potomac but without the food and culture)
To: NeoCaveman
agreed- problem is they don’t factor in food or energy prices for inflation which is BS....has anyone not seen their grocery prices increase 20%-30%???
5 posted on
03/20/2014 9:03:53 AM PDT by
God luvs America
(63.5 million pay no income tax and vote for DemoKrats...)
To: NeoCaveman
Higher inflation brings about higher interest rates.
However, higher interest rates can be arbitrarily applied in a controlled economy...such as we have with the Fed.
How does a business accommodate higher costs? One way is to raise prices.
8 posted on
03/20/2014 9:09:07 AM PDT by
xzins
( Retired Army Chaplain and Proud of It! Those who truly support our troops pray for victory!)
To: NeoCaveman
“Higher interest rates “
Um...no. It its the result of the fed manipulation of setting interest rates. There is no free-market cause and effect here.
21 posted on
03/20/2014 1:43:48 PM PDT by
CodeToad
(Keeping whites from talking about blacks is verbal segregation!)
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