Quote Originally Posted by jk View Post
When that Interest rate rises, the US Federal Reserve has to pass it
on to the banking system, and thus they have to raise interest rates
further. This means that the US banking system will pass on those
Interest Rate Rises to Everyone Else on the planet because the Rest Of
The World borrows so much money from the US banking system.

That means every shop, commercial outlet, sales point or even Internet
Seller has to raise their prices to pay for their own borrowings, and
thus the Interest Rate Cycle looks increasingly the means whereby the
much-delayed Inflation Spike will be set off.
The opposite side and the other view of this is that when the cost of borrowing goes up consumers consume less - thus resulting in asset prices deflating. This is already occurring in the used (and starting with new) car market and potentially housing as borrowing costs rise.