On the flipside, real interest is nominal interest minus inflation. So we have negative negative real interest right now. That explains why assets have exploded. Borrowing literally earns money. This causes inflation. But printing more money to service the debt at 8% causes inflation too. This is a catch 22.
On the flipside, real interest is nominal interest minus inflation. So we have negative negative real interest right now. That explains why assets have exploded. Borrowing literally earns money. This causes inflation. But printing more money to service the debt at 8% causes inflation too. This is a catch 22.
(post is archived)