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Is the market setting the rates when the Fed has them bottomed out? Kind of hard to tell when the banks are essentially able to create free money at the discou
by datavirtue 4y ago
Is the market setting the rates when the Fed has them bottomed out? Kind of hard to tell when the banks are essentially able to create free money at the discount window. I imagine interest rates would be much, much higher than we are used to if they relied on raw savings. Things would be very different for sure, and we most likely would not be able to maintain enough growth to match population growth. That would mean widescale creeping poverty. Maybe not, seems like all we know is a strong dollar cheap fiat orgy, and it has been quite nice.
- whimsicalism 4y agoGiven that these are both human constructs, I don't know what makes one more artificial than the other. Given that one would likely lead to awful financial contractions and instability... and the other doesn't, seems like there is a preferred option - artificiality aside.
- bee_rider 4y agoAt some point this becomes "is human society artificial or is it, like, the natural product of human nature," right?
- whimsicalism 4y agoGood point. Maybe the word "artificial" to describe one human construct vs. another human construct is not a productive conversation.