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Central banks are the problem. They have destabalised the global economy by constantly lowering interest rates and creating asset bubbles to promote the illusio
by sbardle 11y ago
Central banks are the problem. They have destabalised the global economy by constantly lowering interest rates and creating asset bubbles to promote the illusion of growth.
Central bankers are politically appointed in many cases so they have no interest in cooling an economy. It messes up the business cycle and creates the conditions for even bigger booms and busts.
Alternative currencies like Bitcoin will rise in popularity and may hold the key to a less manipulated financial system in the longer term - but I fear we will have another financial crisis before the new alternative currencies have gained traction. We shall see...
- RobertoG 11y agoCentral banks and automatic stabilizers are what have avoided a bigger crisis this time. That doesn't mean that monetary policy is the right solution. The right solution is fiscal policy (government spending) but this is not happening because politics is dominated by crazy ideas about austerity and fiscal balances.
- sbardle 11y agoI'm not so sure. Central banks helped cause the 08 crisis by lowering interest rates after 9/11 and encouraging a housing bubble. Their response to the 08 crisis (bailing out the banks, ultra-low interest rates, QE) may have laid the ground for an even bigger crisis further down the road. All this is good news for alternative currencies IMO.