Variable interest rates are known for one thing : Causing unpredictable hell for the users and controlling power for the the lenders. My meme about variable loans is that they INVARIABLY go up.
What causes Variable rates ? Why do they exist?
The answer is centralized arbitrary controlling of interest rates by powerful authorities. These authorities are namely central banks and nation states.
If there was a free market in interest rates, the rates would move very slowly up and down in minimum increments. IF we had hard money that could not be printed by political FIAT, interest rates would be set by market, tend to be fixed in most all cases, and most likely much lower on average.
I mention all this because Bitcoin will eventually help fix the scorge of variable interest rate loans. It will do it by being the hard money market backstop that is needed to stop fiat printing and rate setting that must be done in the absence of hard money
/ Dan
npub162…attkj
2025-05-22 00:46:52
Author Public Key
npub162faajz3nzfj5wccgx6e9ez75zap37xc3qgl7sjf5zelvqyu9slseattkjPublished at
2025-05-22 00:46:52Event JSON
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"content": "Variable interest rates are known for one thing : Causing unpredictable hell for the users and controlling power for the the lenders. My meme about variable loans is that they INVARIABLY go up. \n What causes Variable rates ? Why do they exist? \nThe answer is centralized arbitrary controlling of interest rates by powerful authorities. These authorities are namely central banks and nation states. \n If there was a free market in interest rates, the rates would move very slowly up and down in minimum increments. IF we had hard money that could not be printed by political FIAT, interest rates would be set by market, tend to be fixed in most all cases, and most likely much lower on average.\n I mention all this because Bitcoin will eventually help fix the scorge of variable interest rate loans. It will do it by being the hard money market backstop that is needed to stop fiat printing and rate setting that must be done in the absence of hard money",
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