Monthly Archives - August 2016

August 2016

Financially Engineered Wealth

Financial theory tells us that as the discount rate goes down asset prices go up. Central banks are artificially pushing asset prices higher with their zero interest rate policy. Monetary policy has failed to create jobs but has increased disparity between rich and poor and unfairly transferred wealth from savers to debtors. The problem is not that asset prices are overvalued. The problem is that nobody wants to have money because it is worthless. Central Banks are dangerously...