socrateazz

Rising Long-Term Interest Rates Go Hand in Hand with the Expanding Economy

A thought I would add is that. Your assumption is interest is needed for expansion of the economy. Much of today's need for interest is for covering expenses. When that is the case, You can expect long term interest rates to also be related to a dying economy! A balanced economy would allow greater lending and thus more trust by the lenders causing lower interest rates. A strong economy would cause a shortage of monies to lend thus causing higher interest rates. An inheritantly weak economy would demand money to keep businesses going. thus fewer lenders would be willing to loan because of fear of default. Where are we now? What is reality? Do not always assume any accepted belief is correct!