Our economy was misaligned toward too much consumer spending and not enough saving. Higher prices and interest rates will cause to eat less, buy less junk, and save more. Not too bad.[/quote]
No, higher REAL interest rates would cause that. Right now real interest rates are negative — a huge disincentive to save — and the Fed will ensure that they remain negative, to the extent it’s able (which as I’ve often said is until the foreigners pull the plug).
