Low Interest Rates Don’t Drive Up Asset Prices – Governments Do

Where they are wrong is it’s not the low interest rates in themselves that have caused high asset prices. It’s the low volatility environment engineered by the government’s promise to do whatever is required. Low rates and high inflation would hurt asset prices. Low rates and deflation would hurt asset prices. It’s the unstable economic state whic

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So, if you truly want a world in which asset prices come down to reality, debt is reduced, and speculation is at a minimum, you are going to have to vote for leadership that will not react when inflation is high, unemployment is high, growth is negative, the banks are in trouble, or deflation is an issue. I don’t know many people that want this (w

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