We are in very uncertain times. And they are becoming more uncertain. The Federal Reserve Bank(FRB) just raised interest rates .25% and has stated it is their objective to raise rates perhaps 3 times in 2017, in an effort to effectively curb inflation.
And while that may seem to make sense based on the way both the FRB has worked in the past, and what we have been told about inflation and how it works, these actions, perversely, are going to have the opposite effect this time around. Should I be correct, then the raising rates will actually fuel inflation, which will force more rate hikes, and then even more inflation. Continue reading