Joseph Stiglitz - Central Banks Should Not Raise Interest Rates

#shorts #nbfshorts

[gorkyd]

The cost of capital barely factors into it. If I take out a private loan from you that I will pay off in 15 years, what interest rate are you going to charge me? You look ahead 15 years and try to imagine what the money will be worth. Government spending is hyperbolic. We're 34T in debt and growing rapidly. And the government itself appears to be controlled by people who somehow don't see this as a problem. So any sane person's prediction of 15 years ahead is that their money will be worth less than half of its current value at most. The fed rate doesn't hardly factor into this.