The Hidden Cost of Zero Interest Rate Policies

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Should the Fed raise interest rates? Some believe that ultra-low interest rates are good for investors because they drive up the prices of stocks and real estate, fattening household balance sheets. Others counter that zero rates are an insidious tax, transferring wealth from borrowers to lenders, distorting incentives and misallocating capital for individuals and government and making the American investor …

Phooey on Financial Repression

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Should the Fed raise interest rates? Are ultra-low interest rates good for investors because they drive up the prices of stocks and real estate, fattening household balance sheets? Or are zero rates an insidious tax, rearranging the terms of trade between borrowers and lenders, as well as between individuals and government, and making investors poorer over time? “Phooey on Financial …

Can We Recover from the Public Debt Crisis? Of Course We Can

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“If something cannot go on forever, it will stop.” – attributed to Herbert Stein Is the world facing a public-debt crisis, or is too much debt just another headache we will muddle through? How can investors distinguish between countries that are likely to default or otherwise injure debtholders, such as through high inflation, and those that will resolve their debt …