surgcare

When Central Bankers Clash, Stock Markets Can Crash

Raising interest rates to control inflation ! Correct me if I'm wrong but todays world economy and markets resemble 1929 . The roaring 20's (roaring 90's followed buy housing bubble ) produced inflation , bubble pop and then recession of which the feds responded by increasing interest rates and made money tight (reduced lending ) which then resulted in a severe depression . Whats worse , a depression where no one has a job or inflation where at least people have work but have to pay a lot more for things which they can control . In any respect I am not sure I understand how increasing interest rates is going to change the dynamics of an imbalance of demand supply in regards to energy (oil) and food (corn , meat etc ).