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RE: Unpopular question

in #economy5 years ago

Ok more context.

Gold/BTC people rightfully complain about government everywhere devaluing currencies, robbing people via inflation.

They rejoice, again rightfully, when borrowing interest rates are kept low, capital starts flowing their way. Same goes for emerging markets, etc.

Now if the Feds had kept interest rates "healthy", not print money (QE), how else would your favorite assets gain in dollar value?

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I don't think there is any simple answer.
However, I feel that raising federal interest rates would help improve the financial positions of investors and savers (raise value of monetary assets), but would reduce spending which would temporarily slow the economy and initially lower our physical property assets.

It seems to me that poeple often confuse status for value, with low interest rates being the facilitator for building their status/value in society.
What I think what we, individually, should to do is slow our spending, reduce our debt, and increase saving and/or investments.

I will respond even though it has been two years.

There is a difference between value and price. Printing money does not increase the value of anything, it only depreciates the dollar. But that does not make BTC more valuable for example, because even if it goes up in price, all other products did too (inflation), so the increase in dollars does not translate into a profit.

The increase in the prices of BTC and those assets is not due to money printing, it is due to more people buying it (more demand) because they see it good for something and start using it, then the price increases.

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