[entropy12]

Correct, ARTICIALLY low interest rates do act as stimulant to the economy for the SHORT DURATION.

It is same as ingesting caffeine with coffee, it stimulates for short period, then you end up more tired later because you have withdrawn a lot of body energy resources.

There is no free lunch. If low interest rates were good for the long term, every country would be prosperous for ever. Artificial low rates are easy to enact. It is easy to sell politically. Europe has much lower rates than us, their economy is stuck in mud and they have no more stimulant left for the economy. Japan has low rates, and they keep padding national debt for ever to avoid riots. Japan’s national debt is higher than United States based on population.

What it boils down to is that economic cycles will exist so long as economy exists. It works best if economy is left to work it’s own cycles. It always rebounds. Artificially low rates create temporary bubbles in hard assets and it is always followed by harder crash later.

[bert]

I will argue that economic cycles are not possible because interest rates are strictly controlled. The reason is said to be inflation.

The real reason is that if the various governments had to pay “normal” interest rates, they would quickly go bankrupt.

It is my belief that in the long run, inflation is the only way to get rid of the debt at all governmental levels

[CincyRichieRich]

Yes, and bidfda.com. I respect you constructive criticism. No big deal, I’m currently at the bengals game rt now
...
Business and economic Cycles only happen naturally when they are not artificially injected or tanks or manipulated. Are you going to tell me that under all of the crony capitalism with the leftists that includes Liberal Republicans that we are under normal conditions and we should have applied normal curves and charts and graphs. No sir. Bilderberg and other people like that that round table that Obama had those people do manipulate the market. If Milton Friedman were alive now and he saw this market and knew everything that we knew here and somebody asked him what I should do I believe he would say I haven’t a clue. To think that the current fed gives a rat’s butt about our current debt and this is somehow helping to finance that debt is totally naive. I sat in on the Midwest fed out of Cleveland at a lecture by one of the PHD Economist a couple years ago the stuff he was putting up on his slides was pure fiction pure fiction out of Obama’s butt. These people are $200,000 a year or more PhD economist who have castles built on sand.

[CincyRichieRich]

What it boils down to is that economic cycles will exist so long as economy exists. It works best if economy is left to work it’s own cycles. It always rebounds. Artificially low rates create temporary bubbles in hard assets and it is always followed by harder crash later. ... Business and economic Cycles only happen naturally when they are not artificially injected or tanks or manipulated. Are you going to tell me that under all of the crony capitalism with the leftists that includes Liberal Republicans that we are under normal conditions and we should have applied normal curves and charts and graphs. No sir. Bilderberg and other people like that that round table that Obama had those people do manipulate the market. If Milton Friedman were alive now and he saw this market and knew everything that we knew here and somebody asked him what I should do I believe he would say I haven’t a clue. To think that the current fed gives a rat’s butt about our current debt and this is somehow helping to finance that debt is totally naive. I sat in on the Midwest fed out of Cleveland at a lecture by one of the PHD Economist a couple years ago the stuff he was putting up on his slides was pure fiction pure fiction out of Obama’s butt. These people are $200,000 a year or more PhD economist who have castles built on sand.