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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?


To: NOW who wrote (5164)8/25/2002 10:06:50 PM
From: reaper  Read Replies (2) | Respond to of 89467
 
<<what happens if interest rates were to rise? >>

then i will lose a lot of money <g>

if rates rise then everything is fine (yeah, i know, this is not what you read in the local paper today that said if rates go up the real estate market is dead, but i'm not your local paper). rates will rise if there is price inflation in goods. if there is price inflation in goods, then companies (by definition) have pricing power, which will increase profits. which will increase hiring, and will increase wage growth. people's debt burdens don't change, and thus will be debased, and thus easier to pay off. the DEBTOR loves inflation. increasing rates saves the economy. that's what Al is trying to do, and my bet is that money is going to heaven faster than he can print more of it. we'll see if i'm right.

Cheers