{"id":61360,"date":"2022-01-08T08:37:02","date_gmt":"2022-01-08T13:37:02","guid":{"rendered":"https:\/\/olduvai.ca\/?p=61360"},"modified":"2022-01-08T08:37:02","modified_gmt":"2022-01-08T13:37:02","slug":"money-supply-and-rising-interest-rates","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=61360","title":{"rendered":"Money supply and rising interest rates"},"content":{"rendered":"<section class=\"research-article__hero \">\n<div class=\"research-article__hero__container _wrapper\">\n<div class=\"research-article__hero__content\">\n<h3 class=\"research-article__hero__content__heading quarto-h2\"><a href=\"https:\/\/www.goldmoney.com\/research\/goldmoney-insights\/money-supply-and-rising-interest-rates\">Money supply and rising interest rates<\/a><\/h3>\n<\/div>\n<\/div>\n<\/section>\n<div class=\"article _wrapper\">\n<article class=\"article__content\"><strong>The establishment, including the state, central banks and most investors are thoroughly Keynesian, the latter category having profited greatly in recent decades from their slavish following of the common meme.<\/strong><\/p>\n<p><strong>That is about to change. The world of continual Keynesian stimulus is coming to its inevitable end with prices rising beyond the authorities\u2019 control. Being blinded by neo-Keynesian beliefs, no one is prepared for it.<\/strong><\/p>\n<p><strong>This article explains why interest rates are set to rise substantially in this new year. It draws on evidence from the inflation crisis of the 1970s, points out the similarities and the fact that currency debasement today is far greater and more global than fifty years ago. In the UK, half the current rate of monetary inflation for half the time \u2014 just for one year \u2014 led to gilt coupons of over 15%. And today we have Fed watchers who can only envisage a Fed funds rate climbing to 2% at most\u2026<\/strong><\/p>\n<p><strong>A key factor will be the discrediting of this Keynesian hopium, likely to be replaced by a belated conversion to the monetarism that propelled Milton Friedman into the public eye when the same thing happened in the mid-seventies. The realisation that inflation is always and everywhere a monetary phenomenon will come too late for policy makers to stop it.<\/strong><\/p>\n<p><strong>The situation is closely examined for America, its debt, and its dollar. But the problems do not stop there: the risks to the global system of fiat currencies and credit from rising interest rates and the debt traps that will be sprung are acute everywhere.<\/strong><\/article>\n<article>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Money supply and rising interest rates The establishment, including the state, central banks and most investors are thoroughly Keynesian, the latter category having profited greatly in recent decades from their slavish following of the common meme. That is about to change. The world of continual Keynesian stimulus is coming to its inevitable end with prices [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7772,13061,431,538,954],"class_list":["post-61360","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alasdair-macleod","tag-goldmoney-insights","tag-interest-rates","tag-money-printing","tag-money-supply"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=61360"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61360\/revisions"}],"predecessor-version":[{"id":61361,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61360\/revisions\/61361"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=61360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=61360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=61360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}