Just the thought of a rise in interest rates has financial markets swooning. Stocks are one thing, it wouldn't hurt for a healthy correction to happen, but the bond markets are another thing. Particularly with the levels of debt that has accumulated over the last several years. Instead of the last few years spent paying down debt the world has created more. And much of the debt is priced in US Dollars. As I have said previously the Federal Reserve, like it or not, is the central bank of the world. The charts below show what has happened with just the thought of a "normalization" of interest rates over the last year.
I do not think they can touch interest rates until inflation is actually a fact. If clear heads prevail there will be no rate hike in December. And the market will shortly catch on....
Nations always inflate away excessive debt. And the world is no different when interconnected by finance. Whether inflation is a moral good or not is another question. I am trying to see what will actually happen when crowds prevail upon policy.