> economic "true-isms" that I've never grokked is why the central > bankers/ accountant types always say "high interest rates reduce > inflation, low interest rates may cause inflation" - I've always > thought of it the other way around. Any takers on this one?
Easy money prompts market makers to price higher and take more knowing it exists. It's fairly closely coupled. Don't worry much about small numeric X-flation. Unless the swings are faster than the time needed for it to pass through the market back to your wallet as income. Example: steep swings in commodities like petrol, gold, steel, and bitcoin often make one consider stockpiling for resale so you don't get priced out before then. Then you have long term, like does your money still allow you to buy the same quantity and quality of goods and services. That's the kicker. Economics is one thing, weird shit being done to and with markets is something else. Ask Bilderberg et al on that one.
