By Connor O’Keeffe
After a dramatic couple of days in the markets, economists and political figures are calling for the Fed to cut interest rates. But if we ever want to see an end to all this economic chaos, what we need are not lower rates or higher rates, but accurate interest rates.
Nothing a central bank does is going to be in our favor.
It sort of can't be. That's the inherent problem with central planning.
this whole dependency and illusion of interest rate policy has long since failed anyway. if we do not return to structural reforms and a radical market economy in which the right to private property and freedom of choice are paramount, we can no longer recover from this Keynesian disease.
I know other countries have made radical market reforms in the past, but I just don't see it happening at the national level in America. They'll just keep accelerating until the wheels fall off.
The main hope we have is radical decentralization and more local market-oriented reforms.
The level of pain provoked by socialism (green bs etc) will reach the point where the evolution of civilization sets in again and lead us back to decentralized market processes. But before that the majority will loose a lot
Correct but it will be better than the alternative.
Better for Canada, maybe. I'd rather they just rip the band-aid off and let the malinvestments get worked out.
It's a nice idea but contagion is real threat.
Contagion implies malinvestment.
I didn't imply there wasn't malinvestment. The whole system is built on malinvestment. Doesn't mean I like it, I just think we are well passed the point where austerity fixes it. That might have been an option in 2008. I don't think so anymore.
Propping up malinvestment is a recipe for prolonged poverty. I doubt they'll allow it to happen, but two years from now we would be in better shape if they didn't attempt to soften the blow now.
But if everything is malinvestment. Including people paying 32x revenue for a multi trillion dollar market cap company you aren't talking about a few bad CRE deals and bad venture investments going belly up, you are talking about the whole damn thing.
When you have the largest government in the history of the world, you're going to have a lot of malinvestment.