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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 374.22-0.2%Nov 21 4:00 PM EST

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To: THE ANT who wrote (113082)8/27/2015 7:32:01 AM
From: elmatador  Read Replies (1) of 217960
 
thanks. When capital was scare, people will bid high and higher to reward it with interest.

Capital being aplenty, people don’t see the need to pay for something that is widely available.

That is not to be construed as; cheap capital, dirigiste China that allocated it to increase growth and create jobs. Building infrastructure.

But now you interrupt me and say: Wait a moment! Did not the US do the same by allocating cheap capital to save their banking system?

Don’t you the parallel between building cities, malls, railways and airports in China?

Keep with my line of argumentation for a while, which means: more capital=less interest rates.

The only way to jack up interest rates is to make money scarce!
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