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Actually it's pretty funny and shows the Sisyphean task that central banks have of promoting productivity and growth when their only tool is printing. If you c
by solotronics 6y ago
Actually it's pretty funny and shows the Sisyphean task that central banks have of promoting productivity and growth when their only tool is printing.
If you can loan billions of dollars for nearly no cost why not put it into something speculative? With a low enough interest rate it would even make sense to take out loans to buy gold, the fiat cost of your loan is impacted by inflation.
Take out a $50k loan this year. Buy gold and bitcoin with it. If the assets appreciate pay off the loan and either collect your profit or let the "free" investment sit. Look at the historical price of bitcoin and there is literally no point you could have bought it and held for a few years and not made money. Take out another loan and repeat.