Fantastic Firefly on Nostr: What people don't understand is that low interest rates don't create economic growth, ...

What people don't understand is that low interest rates don't create economic growth, they create bubbles. Their low interest rates for 10 years are like somebody going on a heroin binge for 10 years, and then expecting there to be no withdrawal pains.

The Fed can not allocate money more thoughtfully than the market. Lets say a uninfluenced market wants to loan money out at 6%, and then the fed comes along and effectively prints up a shit-lode of money, and loans it out at 1%. But well, there was a reason the market was choosing 6%. While you can effectively print up and loan out an infinite amount of money, society doesn't have an infinite amount of resources at it's disposal to build things. Those higher interest rates force society to choose priorities. Unfortunately, under the fed system, most of those priorities are government spending, and stock and housing bubbles.