Baytex Energy Corp T.BTE

RE:RE:interest rates

[dllscwbysfn]

Konaboy wrote: Popular economic thought is that rates need to be at Inflation + Target Growth in order to push inflation down.

So ~8% + 2% = 10%     But of course it is more complicated than that.

Compare the inflation and interest rate curves for 70's to 90's.  Manageable growth rates persisting through 70's, but then pushed up fast, followed by a very drastic reaction.  Curves took a good 15 years to push back down, with interest rates dominating inflation rate.

https://wowa.ca/bank-of-canada-interest-rate

https://www.macrotrends.net/countries/CAN/canada/inflation-rate-cpi

With you that governments could not handle handle this load without things breaking in the near term.  I guess we'll see.

The big question is How did the price of oil respond during this period?

https://www.macrotrends.net/1369/crude-oil-price-history-chart

Too much else going on during that time, methinks.

dllscwbysfn wrote:  Any ideas out there as to how high interest rates will get to and when they will quit rising. The US has raised 3% and it basicly left inflation flat. How much more can the debt holder take before the whole thing collapses? Will there be a massive real estate collapse? Sunday thoughts as the cowboys don't play till tonight
 

 I think we we get anywhere near 6% and many people living on the edge go bankrupt. They can barely make their payments now(many cannot already). There house drops in value lower than what they owe, so they cannot even sell without being under water. This might be a very bad period of time coming up for low to mid income types that don't manage their finances well. The rich will wait then come in like vultures and pick up homes 30 -50 % off. And the liberal governments will claim it is not their fault.