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.