Sunday, July 7, 2013

Universal Havoc Caused By Manipulation Of The Money Supply.

Manipulating the money supply affects all prices and certainly the price that connects the present to the future - the interest rate.

The false signals caused by manipulating the money supply cause malinvestment and over-consumption across all goods and services and of course it causes malinvestment and over-consumption of the goods and services that are sensitive to time. These false signals especially wreak havoc on the capital structure of the economy.

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