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Agreed. If you want more Zebras, raise interest rates. The capitalist system isn’t the problem, it’s the cheap money handed out by fiat from the government to
by poof131 10y ago
Agreed. If you want more Zebras, raise interest rates. The capitalist system isn’t the problem, it’s the cheap money handed out by fiat from the government to banks that funds the madness and the impending fiasco as investors chase ever more fleeting returns. Zebras die when Unicorns have access to nearly unlimited cheap capital to chase after markets with subsidized products being sold at negative margins. It’s price dumping on a massive scale. ZIRP turns the economy into a lottery favoring those with the best access to the trough. Raising interest rates will be painful, but it’s the only way to fix the current situation and goes against the overwhelming Keynesian consensus. Central banks are great when you need to fund a war, but other than that, they can’t take their foot off the gas and simply distort the economy, increase economic inequality, and exacerbate business cycles instead of smoothing them out. We never should have removed political from political economics. [1]
1. https://en.wikipedia.org/wiki/Political_economy https://en.wikipedia.org/wiki/Political_economy