Discussion in 'Economics' started by 0008, Nov 30, 2010.
Do you think some countries will rise the interest rate as the inflation starts to go up?
You have to be a wee bit more specific... Some countries have already raised rates, e.g. Australia, Sweden, etc.
And interest rates in the US oy Veh have risen for maturities not targeted by the Fed.
Difficult to think one can know anything about rates when the Fed and Government are intervening virtually daily.
Big Picture... rates go up at some point due to excessive money printing/inflation all around the world. However, this economically phony "money pump" will likely lead to another financial crisis within a few years. Then money will likely seek the refuge of $USD, if only temporarily, and perhaps drive long treasury yields to record lows...
All quite a crap shoot. Best to trade technically without the notion that "you believe you understand"..
If lending "restrictions" are eased, then borrowing AND inflation can have the potential to pick up leading to rising interest rates. The contagion of "fear of default" can also bring on the same thing . :eek:
Australia raised them on 11/2/2010 to 4.75%
China raised them on 10/19/2010 to 5.56%
India raised them on 11/2/2010 to 6.25%
Korea raised them on 7/9/2010 to 2.25%
New Zealand raised them on 7/28/2010 to 3%
Hungary raised them on 11/29/2010 to 5.5%
Sweden raised them on 10/26/2010 to 1%
Canada raised them on 9/8/2010 to 1%
Brazil raised them on 7/21/2010 to 10.75%
US is in the bottom with just .25% interest rate that will probably stay there for years to come, its been stuck at .25% for 2 years now!!!!!
Well, Japan, UK, the Eurozone and Switzerland are also stuck (with O/N rates in Japan and Switzerland lower than in US). And let's not forget South Africa, which continues to cut rates, rather than raising them.
exactly. difficult to know- "the market can remain irrational a lot longer than u can stay solvent." these threads are always full of people who are too inexperienced to make directional bets. even soros and his gold position are not a one trick pony,
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