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0 pointsneilwilson5y ago0 comments

"we live in a world of massive asset bubbles created by government fiscal policies"

Do we? Or have we lived in a world where asset prices were suppressed due to artificial intervention by central banks.

Interest rate setting is a market intervention. If left to its own devices the market rate would be driven down towards zero.

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2 comments · 2 top-level

lolsal5y ago

Being driven down to zero I think means people would lend at 0% interest - I would think thousands of years of anecdotal evidence would speak to the contrary - how would it ever get to zero? Who would lend like that? What would their motivation be?

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flurben5y ago

> If left to its own devices the market rate would be driven down towards zero.

How do you figure?

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