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I'm not sure I follow. Lowering rates encourage borrowing, is that not the point?
by atomic77 11y ago
I'm not sure I follow. Lowering rates encourage borrowing, is that not the point?
- CyberDildonics 11y agoYou are mixing up government borrowing with private borrowing.
- atomic77 11y agoWhen did I say anything about either? I made a general statement about the effect of interest rates on borrowing, which, the last I checked, is equally applicable to governments as it is to private borrowers. In fact it seems you disagree with my original metaphor, and are commenting without having actually stated the way you interpreted it.
- CyberDildonics 11y agoLowering interest rates encourages private borrowing. Lower interest rates discourage buying treasuries from a government because the rates are lower. You didn't say anything about either because you didn't realize that's what you were referring to.