Citing “…fiat money regime central banks, in close cooperation with commercial banks, increase the quantity of money by extending loans – loans that are not backed by ‘real savings,” Thorsten Polleit, in his piece, The Fed Has No Choice But to Return to Ultra-Low Interest Rates (Mises Wire) further charges that “The artificial increase in the supply of credit pushes market interest rates downwards – that is, below the levels that would prevail had there been no artificial increase in bank credit supply.”

So that, of course, begs the question, where do interest rates go from here? Test your theories against Polleit’s and read his piece for a few more insights.


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