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If the Central Banks don’t keep manipulating interest rates to ZIRP and if interest rates were to simply normalize; the global economy would quickly come to a grinding halt – then go into reverse.
All the FED can do at most is a couple “token” rate increases before cratering the stock market and the US economy.
Actually, the rally in Stocks from 1927-29 took place as interest rates were rising.
“We can see that the Fed raised rates from 3.5% in 1927 up to 6% in 1929 and the stock market doubled on capital inflows.” ~ http://www.armstrongeconomics.com/archives/26080
Markets and commodities can gold up as interest rates rise. Rising interest rates means liquidity is coming out of bonds. It has to go somewhere.
And magically, the Spoos up 1% this morning. All hail the mighty and powerful Central Banking cartel!