The argument would be that the central bank / govt have

Posted on: February 11, 2021 at 12:12:26 CT

to take ever more drastic measures to keep pushing interest rates so low. But, ultimately, the only real trick they have to accomplish that goal is to print money. So, they have to print even more money to target those low rates. As they print more money and as the retail/commercial banks loan up even more credit on fractional reserves (with reserves based on the creation of new money in the first place) there is even more money chasing the dwindling stock of inputs. The crack up booms under the ABCT can take a long time if the central bank continues to interfere with the correction.

There is no reason for interest rates to be so low given how low real savings are.