First, in order to compensate for the diminishment of purchasing power that usually accompanies rising inflation, investors normally have demanded higher interest rates on their investment assets. This was particularly true in the 1977-81 era when inflation soared to almost 20% and interest rates rose to roughly the same level.

…we cannot ignore the fact that several of the most widely-followed and respected economic voices are now raising questions about the potential near-term development of a full-blown market panic.