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> Central planning interest rates will probably never be over 3-4% again Not until we see a large scale war. Nothing raises interest rates like a bond-funded w
by roymurdock 11y ago
> Central planning interest rates will probably never be over 3-4% again
Not until we see a large scale war. Nothing raises interest rates like a bond-funded war campaign. A war would also increase aggregate demand, R&D spend, and decrease the domestic labor force.
It's a sad fact that it takes violence/discomfort to galvanize and restore discipline to a nation and its leaders. Not unlike the disruption of old industries by the new. Except in war, you break bones and bodies whereas in startup land you break laws and customs.
- TheOtherHobbes 11y agoNothing makes them irrelevant like expanding radioactive deserts, huge clouds of fallout, and festering zones of bacterial contamination. I don't think we want a large scale war. Technology benefited a lot from previous wars - without WWII and the Cold War computing and telecoms would be a few decades behind - but technology has changed the risk/benefit profile to make war unfeasibly destructive. The irony is there's a lot that could be done. We need clean energy, more support for small businesses of all kinds, desalination, infrastructure replacement, and possibly a hugely increased space program. But current economic models are fiscally constipated - possibly terminally - and improvements are unlikely until they're replaced.
- pdkl95 11y ago> The irony is there's a lot that could be done. We should have been doing all that and more. Unfortunately, the only thing that was politically feasible was QE. > But current economic models are fiscally constipated Absolutely. After hearing Mark Blyth's recent "ha ha only serious" summary[1] of both of these points... it's going to be a rough ride. [1] https://www.youtube.com/watch?v=iJCcoF5K0SM#t=1160 https://www.youtube.com/watch?v=iJCcoF5K0SM#t=1160
- toomuchtodo 11y agoThanks for this video!