[
link to finance.yahoo.com (secure)]
"The move comes a day after data showed consumer prices jumped nearly 79% a year in August, the fastest pace in 30 years. It was the bank’s ninth rate hike this year."
Interest is the growth rate of money.
The inflation rate of money.
Let’s say the money supply is 1 Dollar and if the interest or inflation rate is 5% per year then after a year the money supply will inflate to 1.05%
Ok so now let’s say inflation is a problem.
What do you do to stop the inflation?
The current way you all think is the right way is by raising the inflation rate of the money supply.
Let’s say by doubling interest rates to 10%
Now after a year the 1.05 inflates to 1.115.
How does increasing the inflation rate of the money supply stop inflation?
They do not think you all dumb.
No no no no no not at all.
The know you all are dumb.
