Why would interest rates rise in an inflationary supply expanding scenario? Doesnt it rise to curb deflation?
Interest rates rise in a no bid market. The alternative is that the govt confiscates your money in the bank and replaces it with bonds.
Do you have an example or is this your theory? I know some small countries had the bank confidcations a few yrs ago but that pushed bonds up and rates down not other way. If bonds crash only way rates go up