/biz/ - Business & Finance

>>24314114

It's never so simple to say higher interest rates are better than lower interest rates; in our current system they're cyclical and more importantly reactionary to the economic conditions. For example according to the central bankers, Interest rates may be set high to stem an overheating economy, and set low to pump a slow economy. In our current situation, jacking up interest rates would blow a lot of companies and individuals up as loans stop being rolled and everything defaults. I do wish that monetary intervention never happened in 08, so that companies that deserve bankruptcy would've been allowed to so that we wouldn't need to be keeping them alive for the next decade with easy money, but there's so much more to it than that too. Saying high interest rates are objectively better is like saying July is objectively better than November. Yes, maybe you're right-ish, but it's missed the entire mark and doesn't make sense beyond the first level.

>>24314146
I've thought about this before, a nation that switches to hard money would be out-competed so much in the short term that the long term benefits wouldn't matter, as they may not reach those benefits they had originally switched for. It's all or nothing, and it makes sense that theres whispers of great resets and new currencies; the current fiat system has reached the end of it's life cycle like all fiat eventually does, but a switch to hard money is strategically impractical for nations and improbable from those in power who benefitted, and so they want to go from old fiat like the eurodollar system to new fiat, like a CBDC system. However this new system will be even more heavily centrally planned and manipulated by the ivory towers, and as such too will not survive long and likely will blow up worse. There really will be a reset then, a Greater Reset, but who knows what state society will be in then. Gold and Silver holders may benefit heavily in that world, but it's not a world to be in.

>>20682104
>>20682532
>>20682637
>>20682738

It's the wealth disparity that's happening. The ultra rich are getting ultra richer, the haves are having more, the have nots are having less. This is the root cause for the rise in the marxists and communists in our society, and the social unrest we're seeing.

Central bank monetary intervention and policy have gave us decades of asset price inflation through their lending standards, encouraging easy money to inflate the price of non GDP improving assets like stocks and housing, instead of lending for job creating small businesses and other such ventures. This creates an asset bubble that when popped takes everything straight to hell. We've literally seen the same story play out in history multiple times, most notably in Japan with it's own real estate bubble and it's own stock market bubble and blowoff top. Somehow, the FED got it in their heads that we ought to copy their playbook.

A big result of their actions is the wealth disparity as all the money flows straight to the top of the pyramid bidding up things that only the rich originally could have. Nothing gets to the common man.

That said, this knowledge needs to be tempered with the understanding that the common man himself is an individual, and that average statistics mean nothing when held against the individual unit, who can through free will, using hard work and willingness to learn rise above a broken system. Systems themselves are overbearing, but structural and unmoving, whereas the individual is flexible, able to turn on a dime, acquire new knowledge and skills, to adapt to a system and then abuse the system itself, and all of the individual's work is scalable to the degree that he is willing to invest himself and his time into his work.

Read up on Richard Werner and his empirical studies on central bank policy to learn more.

this man put out the solution to every financial crisis since 1971
in 1995
>https://eprints.soton.ac.uk/340476/1/Translation_Werner_QE_Nikkei_Sep_1995_final1.pdf