At the beginning of this year, many investors thought that the effects that lingered after the credit crunch would cause a fall in interest rates, or at least hold them where they were. However, over the last week in the market, numerous rises in rates have been the case. Turmoil has been caused in the government- bond markets that are short-term, forcing yields to be somewhat higher. Inflation seems to be the cause of the problem. Bankers are holding on to hope that the rising price of oil and food is just a passing phase and will not lead to runoff effects such as a raise in wages. However, they know that once inflation becomes a problem, there is little chance of elimination.

The first week in June of this year brought both a rise in unemployment in America and a rise in the price of oil by $11. With this combination, the result is pushed harder towards inflation and less toward economic growth.

Many investors are afraid that the anti-inflation acts of the banks will cause some major damage to the growth of the economy.

Economic problems are not isolated to the United States. Consumers all over the world are struggling with the high costs of food and fuel as well as the rising interest rates.