Despite what Fed officials, economists, and their media enablers tell you, there’s no such thing as costless credit. This is important simply because economists and pundits who should know better still claim against all logic and reason that when the Fed goes to “zero,” so do interest rates. No, that’s not true.
Low prices can’t be decreed or legislated. We see this time after time. Scarcity is not a market outcome, rather it’s an effect of government meddling in prices. When governments decree cheap what isn’t, the good in question is more difficult to attain. Basic economics.
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