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I'm really no expert on finance, which is why I put up my question as that. Your reply actually raised more questions than it answered. I get that high interes
by skore 14y ago
I'm really no expert on finance, which is why I put up my question as that.
Your reply actually raised more questions than it answered. I get that high interest rates are bad for a market that is built mostly on credit and I can kinda-sorta see how that would slow down an economy. But I don't see how that completely eliminates investment.
At some point, people have to exchange goods. People have labor to provide and goods to sell and services that they need provided and goods to buy. How is credit the only thing that enables that? Or is the argument that only credit enables it at the level that we see in current day capitalism?
- dragontamer 14y agoIts a simple matter really. If twice as many people are eating twice as much food, you'll need to print twice as much money to keep prices stable. Otherwise, the price of food will double. The central bank prints money. That is a fact. What people forget is the fact that this is useful to an economy. The central bank can abuse its power, and inflate away your cash holdings. (ie: print too much money). That is why BTC are pegged at 21 Million coins. So the question now is, what will an economy based off of a heavily depreciating asset look like. What are the risks?