Construction costs are currently skyrocketing

Also think that interest rates will soon fall again

Rapidly rising interest rates help no one

Rising interest rates help no one

They help all people without debt but with money. When we were both young, they were called "savers".
However, one will not raise interest rates because of them. Much more interesting is the other effect, namely that higher interest rates slow down the economy somewhat and thus indirectly reduce inflation. In addition, high interest rates tend to strengthen the currency. Currently, we still have the effect that the weak euro amplifies the high oil price and thus fuels inflation. The same applies to other raw materials traded in dollars.

At the beginning of the year, when interest rates were still around 1 percent, I predicted interest rates of 5-6 percent by the end of the year. Anyone can read that here.

How I was insulted. Well, we are steadily approaching 4 percent and the year is not even half over. I stick to my statement. Interest rates will continue to rise sharply. Falling interest rates, which some here still dream of, are likely to belong to the past for a long time.

We will only see further low interest rates if the FED and the ECB are willing to give up our currencies.

Despite cuts in the key interest rate by the Russian central bank, the ruble has significantly appreciated against the dollar. Since March, by more than 100 percent. And this, although the Russian state bankruptcy was considered a done deal.

The fact is, price increases in Germany continue unabated. Teag in Thuringia is raising the gas price across the board in the low-wage state of Thuringia by 115 percent, starting August 1, 2022. Flour costs 0.89 cents per kilo, exactly twice as much as in March. Pasta has also risen by more than 100 percent. We don’t even need to talk about diesel and heating oil anymore.

Who on earth is babbling about falling interest rates in this scenario?

A looming impoverishment of further parts of the population can no longer be ruled out. The majority of the population decided this by voting. That must be accepted in democratic consensus. At the same time, one must try to make the best of it.

For me, rising interest rates have the advantage that I get more for my savings. Meanwhile, the Sparda Bank wanted to cancel my current account because I did not agree to the custody fees. But why should I allow myself to be blackmailed?
So I’m supposed to pay penalty interest, disguised as custody fees, for amounts over 25,000. After some threats from Sparda to cancel the account, one hears nothing more now. Apparently, it works without continuing.

Of course, I would be happy about savings interest rates of 7-8 percent as compensation for inflation, as was usual in the past during Bundesbank times. But that will come back too. Unfortunately, due to sanctions policy, one cannot convert into rubles. The currency with the best prospects for the future.

And to remind once again: Putin offered to immediately open North Stream II and supply cheap gas. Unfortunately, our government does not want that. That should be recorded for the history books.

At the beginning of this year, when interest rates were still around 1 percent, I predicted interest rates of 5-6 percent by the end of the year. Anyone can read this here.

How I was insulted. Well, we are rapidly approaching 4 percent and the year is not even half over. I stand by my statement. Interest rates will continue to rise sharply. Falling interest rates that some here still dream of are likely to be a thing of the past for a long time.

We will only see further low interest rates if the FED and the ECB are willing to give up our currencies.

The ruble has appreciated significantly against the dollar despite interest rate cuts by the Russian central bank. More than 100 percent since March. And this, even though the Russian state bankruptcy was considered a done deal.

The fact is, price increases in Germany continue unchecked. Teag in Thuringia is raising gas prices across the low-wage region of Thuringia by 115 percent. From August 1, 2022. Flour costs 0.89 cents per kilo and is exactly twice as expensive as in March. Pasta has also risen by more than 100 percent. We don’t even need to talk about diesel and heating oil anymore.

Who on earth is babbling about falling interest rates in this scenario?

A looming impoverishment of further parts of the population can no longer be ruled out. The majority of the population has decided this by their vote. This must be accepted in democratic consensus. At the same time, one must try to make the best out of it.

For me, the rising interest rates have the advantage that I get more for my savings. The Sparda Bank wanted to close my checking account because I did not agree to the custody fee. But why should I allow myself to be blackmailed?
So I’m supposed to pay penalty interest, disguised as custody fees, on amounts over 25,000. After some threats from Sparda to close the account, you don’t hear anything now. Apparently, it works without it after all.

Of course, I would be happy about savings interest of 7-8 percent, as an inflation adjustment—as was still usual back in Bundesbank times. But that will come again. Unfortunately, due to sanctions policy, you cannot convert into rubles. The currency with the best future prospects.

And to remind once again: Putin offered to open Nord Stream II immediately and deliver cheap gas. Unfortunately, our government does not want that. That should be recorded for the history books.

Are you serious? How can anyone write such nonsense?

They help all people without debt but with money. When we were both young, that was called "savers." But because of them, interest rates will not be raised. Much more interesting is the other effect, namely that higher interest rates slow down the economy somewhat and thus indirectly the inflation. In addition, high interest rates tend to strengthen the currency. Currently, we still have the effect that the weak euro further amplifies the high oil price and thus fuels inflation. The same applies to other commodities traded in dollars.

For exports, a weak euro is not the worst. And which of the Euro countries live off exports?

A weak euro is not the worst thing for exports. And which of the Euro countries lives off exports?

Germany is the export world champion, I know. But unfortunately, it's not as simple as it seems at first glance. On the one hand, a large part of the exports goes to the EU, and there the exchange rate does not change. On the other hand, a lot of raw materials are needed that must first be bought expensively on the world market. If they can be procured at all. And what happens with our major customer China, nobody really knows either. I don't see golden times through a weak euro for the time being.