|
|
|
|
|
|
by Mvandenbergh
2282 days ago
|
|
|
Debt is just consuming now what we will produce later. That means that later we will have less. Luckily, the number which tells us how much it costs to shift production temporally: the real interest rate, is low. As a result, we can deal with the impact over the course of decades. As long as there is no crisis of confidence in the ability to repay that debt, it will not be an issue. |
|
|
That measure has been meaningless for a long time now since the central banks manipulate it for whatever goal they are currently trying to achieve.
With the amount of uncertainty in the current economic climate if interest rates were set by the market they would be skyhigh as nobody would risk loaning money.