We're entering uncharted terrritory with debt and interest
We're about to make history y'all! But not for a good reason... We're breaking out of the interest rate bear trend we've been in for over 35 years.
We used to raise interest rates to help control the debt; but after we abandoned the gold standard it didn't work so well. Going forward the economy could handle less and less rate hikes, while debt sky-rocketed. You'll also notice in vertical red, are market peaks before big crashes. For the last 20 years, a crash always follows the hike. Then the government uses it as an excuse to take on more debt.
Something else unique about this hike is that the yield curve inverted from the beginning of the hikes, when in the past it only inverted near the end of several hikes. You can see that in the link below.
We used to raise interest rates to help control the debt; but after we abandoned the gold standard it didn't work so well. Going forward the economy could handle less and less rate hikes, while debt sky-rocketed. You'll also notice in vertical red, are market peaks before big crashes. For the last 20 years, a crash always follows the hike. Then the government uses it as an excuse to take on more debt.
Something else unique about this hike is that the yield curve inverted from the beginning of the hikes, when in the past it only inverted near the end of several hikes. You can see that in the link below.
