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This doesn't make sense to me. Low interest rates are possible when inflation is not out of control. Don't you need a money sink instead of a money source to ma
by AlexandrB 3y ago
This doesn't make sense to me. Low interest rates are possible when inflation is not out of control. Don't you need a money sink instead of a money source to make low interest rates possible for long periods? In a way that could still be SV's doing though. Garbage companies like Juicero were able to absorb capital from the "real" economy to keep inflation from rising.
- tmnvix 3y ago> Low interest rates are possible when inflation is not out of control. Not to be pedantic, but it really depends on what you mean by inflation. If you only consider CPI then sure - maybe you're right - but in my opinion we've had out of control asset price inflation together with falling interest rates since around the time of the GFC. I'd go so far as to say it's been the defining feature of western economies over that period. Basically badly implemented quantitative easing.
- FredPret 3y agoI did say tsunami of money but I should have said value. Value fountains are deflationary. Juicero is nothing in the grand scheme of things.