There are two articles of faith in the central-bank religion:
1) We can keep interest rates near-zero for as long as we deem necessary, and
2) We can suppress inflation at will, too.
The question is: can they do both at the same time for as long as they wish?
If either interest rates or inflation (and they are correlated) start rising, the central banks’ claims of control evaporate.
Read the complete article at OfTwoMinds here.
Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.