Thank you for this. I think I get it now. I was actually referencing this in some talks with friends over the weekend, so we all learned something :P
Basically, the feds artifically lowered intrest rates means their loaning out money the economy (our capital) can't really afford. Eventually, they'll have to either print more money to compensate, face a backlash of inflation(?), or both. In the end, that 20 year low intrest loan isnt enough to sustain their projected expenses because its a lie that has repercussions.
The value of that loan will crumble and never hit its inteded target. The value of that money just isn't really there.
Thank you for this. I think I get it now. I was actually referencing this in some talks with friends over the weekend, so we all learned something :P
Basically, the feds artifically lowered intrest rates means their loaning out money the economy (our capitol) can't really afford. Eventually, they'll have to either print more money to compensate, face a backlash of inflation(?), or both. In the end, that 20 year low intrest loan isnt enough to sustain their projected expenses because its a lie that has repercussions.
The value of that loan will crumble and never hit its inteded target. The value of that money just isn't really there, and the low intrest rates means, the economy isnt making anything back to move around.
Thank you for this. I think I get it now. I was actually referencing this in some talks with friends over the weekend, so we all learned something :P
Basically, the feds artifically lowered intrest rates means their loaning out money the economy (our capitol) can't really afford. Eventually, they'll either have to either print more money to compensate, face a backlash of inflation(?), or both. Either way, in the end, that 20 year low intrest loan isnt enough to sustain their projected expenses because its a lie that has repercussions.
The value of that loan will crumble and never hit its inteded target. The value of that money just isn't really there, and the low intrest rates means, the economy isnt making anything back to move around.
Thank you for this. I think I get it now. I was actually referencing this in some talks with friends over the weekend, so we all learned something :P
Basically, the feds artifically lowered intrest rates means their loaning out money in a way the economy can't really afford. Eventually, theyll either have to either print more money to compensate, face a backlash of inflation(?), or both. Either way, in the end, that 20 year low intrest loan isnt enough to sustain their projected expenses because its a lie that has repercussions.
The value of that loan will crumble and never hit its inteded target.