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Yes, that's how they artificially suppress interest rates.

Posted on: September 20, 2024 at 14:54:18 CT
ummmm MU
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Interest rates are simply the price of loanable funds, and the price of loanable funds are not immune from supply and demand principles. The more loanable funds (i.e. supply), the lower the price of those loanable funds.

The difference between loanable funds (priced in fiat currencies) and actual market goods is that fiat currencies aren't directly limited by scarcity. So, at least for the short term, the entity in control of the fiat currencies, can physically grows its supply.

Of course, there are and will be unintended consequences to these actions.
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          It will be Trump's turn to be blamed for "inflation" caused - ummmm MU - 9/20 14:33:32
               Is a lower interest rate - meatiger MU - 9/20 14:38:20
                    Yes, that's how they artificially suppress interest rates. - ummmm MU - 9/20 14:54:18
                         So why did so many people - meatiger MU - 9/20 14:57:20
                              Neither the Fed nor any other government entity should be - JeffB MU - 9/20 15:05:51
                                   agree - meatiger MU - 9/20 15:10:45
                                        Which comments of mine did you find 'quite funny'? (nm) - JeffB MU - 9/20 15:18:17
                              I don't know. I think everyone has a different opinion - ummmm MU - 9/20 15:02:36
                                   Agreed - meatiger MU - 9/20 15:09:47
                    Yes. They lower interest rates by buying US treasuries. - JeffB MU - 9/20 14:48:05
               It might be enough to delay the collapse/pop of the bubble.(nm) - JeffB MU - 9/20 14:35:07
                    I'm not so sure - AWOLTiger KC - 9/20 14:54:15
                         Yes, at some point it all collapses. I think the analogy of - JeffB MU - 9/20 15:08:37




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