Andy1234

The Rise of Inflation Premiums

I personally don't think the fed can raise interest rates because of multiple reasons.

1) The interest on their short term interest rates would be HUGE...this would lead to massive money printing just to cover the interest on the debt.
2) House prices would tank yet again....as interest rates would need to rise in order for the velocity of money to be slowed down and saved.
3) The two above would slow growth of the economy or kill the economy......I don't know how the fed can balance a bubble forever.


We currently have malinvestment everywhere.....at some point these malinvestment need to be cleaned.....and the way the government is choosing technologies to invest in, and what not to invest in, and the rules/regulations they set through policy will create massive distortions....once that low interest rates will not be able to resolve.

What we need to do is deregulate in real terms. Remove all regulations and let companies fail who are incompetant.....that ultimately is the regulation...being able to survive. Remove all government scholarships, grants, etc. Remove regulation and paperwork on the health care side etc. We should see prices come down dramitically. Prices still continue to drop with operations that are selective....like lasic eye surgery and cosmetic surgery.

Central planning does not work.....we need the free market to do it. And we need to slowly get ourselves away from government. Just MO.



On Aug 27 08:28 PM JeffDB wrote:

> On Aug 27 05:40 PM Erwan Mahe wrote: