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Low Interest Rates Cannot Perpetuate a House of Cards
by Richard Ebeling
The Daily Bell
When is the price of some marketable good or service at or near zero? When either the supply of it is so plentiful that virtually any demand, no matter how great, can be satisfied or when no matter how large or small the supply of it may be, people’s demand for it is so low that nobody is willing to practically pay anything for it.
On Thursday, September 17, 2015, Federal Reserve Chair Janet Yellen announced that, once again, America’s central bank was leaving a key interest rate – the Federal Funds rate at which banks lend money to each other overnight – at barely above zero. The Federal Reserve has manipulated and maintained this interest rate near zero for almost seven years, now.
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Source: http://financialsurvivalnetwork.com/2015/09/low-interest-rates-cannot-perpetuate-a-house-of-cards/?utm_source=rss&utm_medium=rss&utm_campaign=low-interest-rates-cannot-perpetuate-a-house-of-cards
