Sunday, September 20, 2015
Article Review 1
The main argument introduced and argued throughout the article focused on, mainly, of how the interest rates that we have are currently creating an economic bubble that will likely pop in the near future and going against the idea that the government is tightening too much money, but instead actually needs to have tightened the amount of money it had a lot sooner. I wasn't too sure at first, but understanding now, the current negative interest rate of -1.52 means the government is basically giving away money, all while trusting that businesses/consumers will use that money for spending and good business decisions. Overall though, there is no actual monetary stimulus to make up for the fact that it lost a lot more money than in past years because of it, with business investment actually being lower in 2015 than 2000, even though the federal government issued out incredibly more money than before. The author was very aggressive in his stance, constantly getting angry at the Goldman index, in which it had data that "instructs" the central planners to not fix the distortions in the market, constantly causing the bubble to grow bigger. The problem, though, is that it's been constantly done so many times over the past 25 years, "fixing" the current problem with a short time solution. And, according to the author, due to the "nonsense" that Keynesian Economics supporters' impacts have had on the federal government's spending, the economy's collapse will be brutal and incredibly destructive.
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