In the aftermath of the financial crisis, central banks implemented Zero Interest Rate Policy (ZIRP) to prevent economic collapse. However, instead of fostering genuine growth, ZIRP has bred a "zombie economy," where 42% of companies in the Russell 2000 Index are operating at a loss, kept alive by easy access to cheap capital.
But the damage goes deeper than inefficient companies surviving. ZIRP laid the foundation for growing state power and interventionism, with governments stepping in to control markets, sectors, and industries more tightly. Under ZIRP, markets are no longer free, and the state takes on a paternalistic role, bailing out failures and redistributing wealth in ways that erode personal responsibility and innovation.
The consequences are far-reaching and destructive. As state power grows, society moves dangerously closer to socialism, where the government plays an ever-larger role in the economy, distorting the natural mechanisms of competition and market discipline. This leads to a stagnant economy, where true prosperity is replaced by dependency on government intervention.
Bitcoiners know that sound money, not debt, fuels a healthy economy. ZIRP has pushed us toward a socialist-like system, where intervention, not market forces, rules. It's time to push back before the foundations of a free economy are permanently eroded.
When an economy allows its government to intervene and there is no longer a free market, it is a step towards socialism. Socialism is one of the worst things that can happen to a country.
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It's a mental illness
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I've said it before.. your economic articles are excellent!! Don't stop publishing!! Those of us who are learning don't overlook valuable information like this... I like the term "Zombie Economy" and the truth is that healthy money is needed and not debt for the economy to be adequate!! We'll wait and see but concrete actions are necessary to escape the path that little by little is getting closer to socialism... something that no one wants!! A system of misery and need....
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Thank You. I'm still in nowhere land with bad internet connection but if I'm in the town I always try to catch up with fiat clown world
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Im surprised the russel is doing better than the sp500 index. Times are really changing.
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