As mentioned in a previously article “the flow of money” money tends to flow in the path of least resistance. At the end, government officials with the financial bribes of lobbyists groups foolishly decide where investments should be re-directed instead of the free-market at the bennifit of major corporations. For instance, Real –Estate in Canada and in […]
Tag Archive | "Interest Rates"
Economic Stimulus From the FED – Twist 2.0
Posted on 30 June 2012.
As inflation was tame, stocks prices went lower, and unemployment higher, many investors thought that another round of Quantitative Easing would be on the top of Fed chairman Ben Bernanke’s to-do list. Instead the FED once again reintroduced Operation Twist where a swapping of short- and long-term bonds, would lower the longer term bond yields […]
Posted in Economic Crisis, US Dollar CollapseComments (266)
Effects of Low Interest Rates – Part 2
Posted on 22 May 2012.
As mentioned in my previous post, “Effects of Low Interest Rates Part 1,” the easy monetary policies created by central banks and governments is what fuels economic booms and their consequent busts. Keynesian government intervention skews the business cycle: the creation of credit expansion undoubtedly provides growth, but this growth is now part of an […]
Posted in Gold and Silver, Housing Bubble, US Dollar CollapseComments (37)
Effects of Low Interest Rates – Part 1
Posted on 26 March 2012.
Lowering interest rates can potentially boost economic activity as it increases both speculation and exports by devaluating the currency. Its effects, are artificial and temporary, at best. New growth caused by cheaper money must come from somewhere, and as I pointed out in another article “Fiat Currencies” this money comes at the expense of the […]
Posted in Housing Bubble, US Dollar CollapseComments (425)
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