>>510459613
>By depressing money lending: credit gets more expensive, which lowers loans and money supply available to spend and invest.
If the lending slows, the money supply growth slows. Which makes it more difficult for people, businesses, local and state governments with outstanding debt to banks to continue servicing their debts. Which increases the default rate.
Again, the only way raising interest rates causes a slowdown in inflation is if debt gets defaulted on, rather than continue being serviced by rolling it over. If it continues being serviced by being rolled over then raising interests rates actually accelerates inflation, imo.
Also, let's not forget that for the for-financial-profit operated capitalist economy to be financially profitable, the money supply has to grow geometrically perpetually. And if borrowing slows down, so does creation of more (mostly fictional) fiat currency. Which inevitably causes business failures, closures, rise in unemployment. Which in turn should cause defaulting on debt. Which in turn can cause bank "bail-ins" or "failures" whereby some of the fictional cash in the banks gets formally/officially cancelled.
>Good morning to you too, Ferengi.
Henlo, good morning to you too.