Hi All
I grew up in the 1970's and 80's when interest rates hit nearly 20%. When we joined the euro we were assured that this would never happen again. My question always was why not? Since interest rates now are at historic lows they do have to go up. Since extra money has been released into the global economy and metals, oil, natural resources are depleting it is obvious that prices will rise eventually and that interest rates will rise in tandem to counteract inflation. Recently I have heard people say that the bond bubble (bursting) will somehow lead to higher interest rates. Could someone explain this?
Thank you.
I grew up in the 1970's and 80's when interest rates hit nearly 20%. When we joined the euro we were assured that this would never happen again. My question always was why not? Since interest rates now are at historic lows they do have to go up. Since extra money has been released into the global economy and metals, oil, natural resources are depleting it is obvious that prices will rise eventually and that interest rates will rise in tandem to counteract inflation. Recently I have heard people say that the bond bubble (bursting) will somehow lead to higher interest rates. Could someone explain this?
Thank you.