The big reset

Most people understand how higher interest rates effect home and car loans but business is also effected. Most growing businesses use borrowed money and they don't pay off the loans they just roll over the debt which means the loan they had the last 6 months at two percent will now cost three percent and this continues each time they renew the loan. When cheap credit is used to build business the economy thrives but when the cheap money is used by investors to make more money this detracts from business growth. This creates a shift from the production economy to a financial economy but it was certain industries that would be effected. A big financial institution that makes money by buying and selling stock does not produce any goods. About five years ago the worlds central bankers decided that they needed to take a more active role in climate change and they decided to move money away from industries that produce carbon and toward industries that have a low or zero carbon foot print. Programs were introduced that would promote non-carbon producing industries like wind and solar. It became increasingly difficult of the fossil fuel industry to get loans which acted as a deterrent to increasing production. Meanwhile about $20 trillion dollars was directed toward various financial institutions and these investments led to the inflation we are now experience since they were spending money and not increasing production which meant a shortage of goods. The change in policy in the Fed is often referred to as the big reset.