Interest rates hike and inflation - question

Submitted by GotiaCardori t3_11vj2g0 in wallstreetbets

Hi. Im from europe and we are living a strange period here w the war, inflation and interest rates hikes. Dispite that several countries are bailling companies.

I cant remember a time when the FED, BCE are incrising interest rates and at the same time printing noney.

What can happen if they try too wlak both paths? High inflation w high interest rates and a lot of zombie companies?

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VisualMod t1_jct84xw wrote

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VisualMod t1_jct85az wrote

>It's possible that we could see high inflation and interest rates if the Fed and ECB continue to print money, but it's also possible that we could see a lot of zombie companies if they don't provide enough stimulus to the economy. It's really impossible to say for sure what will happen since there are so many variables at play.

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the_hornicorn t1_jctb3bm wrote

They are using the high global population to their advantage. Initially they thought the solution was to cull the carbon units, however with the usd being the "global currency " of the West, they are able to distribute the inflation amongst many countries, institutions, investors, inheritors, businesses, and humanoids in general (increased cost of living).

This is by no means a solution, merely a temporary band aid, the only solution remains, the great cull.

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mattymoyanksfan t1_jctfoy8 wrote

Disinflation and a lot of zombie companies will go bankrupt

4

DN-BBY t1_jctfse5 wrote

stagflation with gold go boom

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curioussobserver t1_jctxie3 wrote

My eyes are hurting…

Im - I’m

w - with

Dispite - Despite

bailling - bailing

cant - can’t

incrising - increasing

noney - money

too - to

wlak - walk

Son, you’re gonna have to do better than that to have any shot at financial commentary

−4

Dorktastical t1_jcuqipu wrote

"we are living in a strange period with the war, inflation and interest rate hikes"

I thought people from Europe were supposed to be better educated on stuff like history and geopolitics?

having low inflation and/or no war would be strange for Europe, not to mention fuedalism dominating the past thousand years and the taxes that imposed.

0