Originally Posted by chiefforlife
Interesting, I have to admit, I had never really thought about it that way.
Most people don't and unfortunately it's the best kept, dirty little secret of our society. I happen to follow the financial markets closely and have for going on 20+ years now.
Don't be fooled though, there are peope who will take the other side of the coin on this argument and say higher rates would choke off the economy, hurt borrowing and what not.
I call that bunk because of the impacts it has on everyday people like I have described. My argument is if you make the cost of living cheaper then people will have and spend more money thus offsetting any impacts to borrowing.
It actually drives consumption which will drive demand which will drive borrowing.
As opposed to the status quo where we make it cheaper to maintain the status quo.
We have had rates low for years and what have we seen? Increased joblessness. Increased failed businesses and a housing market that is in no better shape than it was 4-5 years ago. We have seen gas prices soar, energy prices soar and food prices soar.
So you can be the judge but I think it's time to try what we have been stubbornly refusing to try for the last few years.