Dr. Peter's Financial Systems Blog
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  • 126. The three virgins
  • 125. My work as an inventor
  • 124. Bad programmers develop email systems at Google
  • 123. Fed & Worldwide interest rate hikes
  • 122. The End of Putin and Russia
  • 121. Disaster in Europe and the end of Ukraine Russia war
  • 120. Is this the end of Ukraine?
  • 119. Proton car salesman
  • 118. Coming worldwide catostrophic diasasters to come
  • 117. President Joe Bideen there is something wrong
  • 116. Does YouTube Malaysia hate non muslims?
  • 115. YouTube increase subscribers and views
  • 114. YouTube is broken
  • 113. open letter to Sundar Pichai, Sergey Brin & Mark Zuckerberg OAuth 2.0 and Contact Us Forms
  • 112. Visions regarding the church and the Chinese
  • 111. The coming worldwide cataclysm
  • 110. President Biden Declares Mass Killings of Armenians a Genocide
  • 109. Checking for clogged arteries
  • 108. President Biden tax revenue from stocks, commodities & forex
  • 107. Thank you President Trump
  • 106. Telecommunications companies billing flaws, bandwidth and other problems
  • 105. President Trump, What has happened to America?
  • 104. Is the China Virus an American Virus?
  • 103. Congratulations to President Elect Biden
  • 102. novel lithium ion battery protection circuit design for longer working life reduce toxic waste
  • 101. Did I cure myself of covid-19 coronavirus?
  • 100. President Trump bless you and recover from the China virus quickly
  • 99. Black lives matter too and so do the lives of the non-Chinese
  • 98. how to overclock cpu with technology that has not been invented yet
  • 97. vaccine lobby conspiracy theory the coming worldwide economic depression
  • 96. laptop refurbished cpu overheating with novel cooling techniques other errors.
  • 95. Letters to President Barack Obama during the great recession of 2008
  • 94. The Cedar of Lebanon is falling. Internet fake news fraud scams and pseudo communist social media companies
  • 93. coconut oil could cure viral diseases coronavirus hiv rubella hepatitis c influenza shingle rabies nipah.
  • 92. YouTube and the death of Western civilization by the coronavirus
  • 91. covid 19 and additional cures and relief for other health problems
  • 90. President Trump infections and the spread of covid-19 until 2024
  • 89. President Trump alternative cures for covid-19
  • 88. President Trump the corona virus and relief from neuropathy nerve pain
  • 87. a potential cure for Covid-19 virus
  • 86. President Trump a potential cure for Covid-19 virus
  • 85. President Trump the effects of the corona virus on the US economy
  • 84. A sad prophecy for Malaysia
  • 83. You are a hero President Trump
  • 82. do not make paul into a god and misunderstanding the laws of Moses.
  • 81. poor protestors rebellion revolution in many countries hong kong bolivia chile peru iraq
  • 80. Star of David Banner
  • 79. Prosperity God Jesus Christ in the churches in malaysia
  • 78. president trump jared kushner $50B palestinian peace plan would not work
  • 77. problems youtube video not showing homemade bread recipe.php
  • 76. php ziparchive not working apache server hard disk full problems
  • 75. LG fridge problems
  • 74. President Trump beware of scams
  • 73. open letter to Sundar Pichai, Sergey Brin & Mark Zuckerberg on proxies, caches and ip addresses
  • 72. open letter to Sundar Pichai, Sergey Brin & Mark Zuckerberg on auctions
  • 71. the tyranny of the turks
  • 70. formulae for Pythagoras Theorem
  • 69. A parallel processing theorem for machine and robotics control
  • 68. Angela Merkel should be nominated for the Nobel Peace Prize
  • 67. Why does the church not want the Ten Commandments?
  • 66. responsive web design for all devices using php superglobal variables
  • 65. We cannot block hackers anymore
  • 64. Books & e-books for sale
  • 63. Comparison of indices DJI, S&P 500, NYSE, NASDAQ and interest rates
  • 62. Predicting the NASDAQ trend from 2016 to 2020 and the S&P 500 from 2017 to 2022
  • 61. Forecasting the NYSE and the DOW Jones Industrial for 2018 to 2022
  • 60. my letters to the prime minister during the 1997 Asian Financial Crisis
  • 59. The way forward
  • 58. Wake up Israel it is time
  • 57. The Calling of the Lord
  • 56. Congratulations President Trump on the bombing of the Syrian military base
  • 55. President Trump and the 7 muslim nations
  • 54. Cure for diabetes and neropathy nerve pain
  • 53. Thank you President Barack Obama
  • 52. healing from ankle and knee joint pain with stem cell products.php
  • 51. Congratulations to President Trump
  • 50. Obamacare
  • 49. High cost of insurance premiums
  • 48. Past predictions and the price of gold
  • 47. Save the children
  • 46. Sino Russian world war and the end of America
  • 45. The Lord Gods blessing and generational curses and gays lesbians
  • 44. Slowing economic growth
  • 43. False teachings in the church in Malaysia
  • 42. Banking problems in Malaysia with AmBank
  • 41. Banking problems in Malaysia
  • 40. Historical-performance-of-my-commodity-price-prediction-charts
  • 39. Major changes to the earths continents to occur if Israel is divided
  • 38. Block hackers bad bots scrappers stop ddos attacks wordpress blog sites
  • 37. China starts world war 3 with rampant piracy and bullying smaller nations
  • 36. Powerful nontoxic insecticide used in my kitchen for exterminating ants
  • 35. Soybean prices forecast chart 2013 2014 2015 2016
  • 34. Palm Oil price trend prediction 2012 2013 2014
  • 33. NYSE Composite Index prediction of 2015 Bull Run
  • 32. Brent-crude-price-forecast-2012-2013-2014
  • 31. Congratulations-President-Barack-Obama
  • 30. Indian stock exchange nifty index prediction chart
  • 29. Soybean prices commodity chart prediction for day traders and others
  • 28. Huduh is not for malaysia and the errors in huduh
  • 27. My rapeseed commodity chart prediction useful for day traders and others
  • 26. Problems problems and more problems
  • 25. stock chart signals and price action patterns - by Steve Sollheiser
  • 24. Malaysian property prices and the property market
  • 23. Malaysian population growth and Malaysian property prices
  • 22. False teachings of the muslim terrorist
  • 21. The alternative technical analysis for commodity and stock market analysis
  • 20. Malaysian property price, bubble and crash in 2012
  • 19. The basics of stock market, forex, commodity and financial economy models
  • 18. Gold price and business opportunities
  • 17. US Economic recovery and growth part 4
  • 16. US Economic recovery and growth part 3
  • 15. Gold price forecast trend chart 2011 2012 2013 2014 2015 2016
  • 14. US Economic Recovery and Growth Part 2
  • 13. US Economic Recovery 2009 2010 2011
  • 12. How to predict gold price trend 2011 2015
  • 11. Malaysian property prices and the property bubble
  • 10. Distribution of Wealth Model and Supply and Demand
  • 9. Gold price forecast 2011 2015
  • 8. Explanation of inflation and model of inflation hyperinflation
  • 7. Approximate silver price trend prediction chart june sept 2011
  • 6. how to predict stock and commodity trends
  • 5. Causes of economic crisis recession and high inflation or hyperinflation
  • 4. What is inflation and how to manage inflation
  • 3. Making sound investment decisions
  • 2. forecasting commodity and stock market trends
  • 1. Dr. Peters Loan Calculator
    « The End of Putin and Russia
    The Glitter of Gold lasts forever but you need to shine a light on it.
    - Dr. Peter Achutha, November 2009
    Bad programmers develop email systems at Google »

    How does raising interest rates help inflation

    price increase

    Why are governments all over the world increasing interest rates? Interest rate hikes will not solve anything but make things worse for the common man. What were they thinking? Were they trying to induce a recession? I just do not understand why the fed interest rate hike in 2022 was carried out. The poor and the less fortunate will suffer espcially those without substantial savings. How does raising interest rates help inflation? Everything will go up in price from mortages to car loans, which is an artificially created additional inflation. This will cause a drop in Demand resulting in retrenchments and job losses and will spiral downward the loss of Demand even further.

    Commodity markets not functioning properly

    Have you looked at the commodity markets? Why are commodity prices rising? Who are benefiting from the commodity price hikes? Is it the farmers, the smaller businesses or the general public or the third-party raiders of the commodity exchanges - who do not represent Supply or Demand? Personally, I think the commodity exchanges have become an overcrowded greed feeding fest without a care in the world but the reality of increased price afflictions. Do we need an alternative system? Just take a look at the petroleum industry.

    microsoft hacking

    The chart above is from Yahoo finance.

    microsoft hacking

    This chart of wheat prices is from businessinsider.com

    Here, we can understand why wheat prices have gone through the roof as the supply has been curtailed.

    The main problem here is the Ukraine Russian war. The common man suffers at the higher cost of electricity, gas, petrol, diesel and other commodities but the petroleum corporations enjoy huge profits. Something is wrong here, right?

    Increasing interest rates not effective

    Remember, I developed this equation many years ago in my articles to ex-President Barack Obama but my computer was stolen:-

    D – S = kI . . . the Demand Supply Equation

    D is Demand
    S is supply
    I is Inflation
    K is a constant.

    If Demand increases Inflation increases. If Supply decreases, Inflation increases.

    Let me explain why I differ. When you have an increase in Demand, hiking interest rates is effective. For example, housing loans, car loans and business loans get more expensive and so it curbs demand and slows growth to more moderate levels. This becomes effective in an overheating economy or to prevent an overheating economy. If the Demand side does not increase it is of no use increasing interest rates. An increase in interest rates under these conditions causes Demand to shrink and the economy can collapse into a recession.

    It appears that most of the commodity price hikes are caused by Supply side shifts. The Supply of commodities has reduced, due to the Ukraine Russia war. This makes it appear that Demand looks greater when in actual fact there is a shortage of Supply and hence the price increases are due to the upset in the Demand - Supply equilibrium caused by the Ukraine Russia war.

    No use increasing interest rates

    It is of no use increasing interest rates. What governments around the world need to do is to stop the Ukraine Russia war, Ukraine gets back all its territories and search for alternatives to alleviate the loss of Supply.

    An alternative non political approach

    Many in the West are arguing over right wing, left wing, socialst or fascist or democratic or center politics. Forget about the politics as these will most likely be based upon personal feelings. Many years ago, during the Great Recession, 2008 to 2011, I sent ex President Barack Obama my book on an alternative theory of economics which was very mathematical. In there I explained that the best approach would be to help the majority of the population, instead of looking after banks and the rich.

    The figures in the charts below are fictitious but give a clearer picture.

    Alternative policies to high interest rates, the Distribution of Wealth

    When governments focus on raising the wealth of those lower down, then the general population will benefit. As a result many businesses will benefit directly from these wealth improving policies. This can be done by improving health care and lowering its costs, lowering interest rates so that the less fortunate can purchase their first homes, providing good education and training for those who need it, espcially the school leavers.

    Generating Demand with Alternative policies with lower interest rates, the Distribution of Wealth

    You can see why increasing the wealth of the lower income groups will increase Demand and bring about greater prosperity. Most likely many new businesses will start up and more investors will enter the country to benefit from the increased wealth of the population.

    The Ukraine-Russia war is upsetting the economic balance and no amount of hiking up interest rates will solve this loss of Supply of cooking oil, gas and other commodities. I suspect that ex President Barack Obama never understood my theories, that is why America is hiking up interest rates without taking into account a Supply shortage. Why is the FED interest rates in 2022 going up?

    If you want to know more about my work please checkout my article.

    - Dr. Peter Achutha, 28th August 2022

    Firefly desktop personal computers

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