Part 12/16:
He argued that while lower interest rates make borrowing cheaper and stimulate economic activity, they also risk re-inflating bubbles, especially in assets like Bitcoin and stocks. The cycle of printing, rate hikes, and subsequent reductions was described as a “yo-yo” pattern that may continue until something structurally breaks — or a new financial paradigm emerges.
The Debt Quandary and the Future of Global Currencies
Turning to sovereign debt management, the expert cited the massive debt issued by the U.S. and other countries as unsustainable, particularly as interest rates rise. He explained that when debt matures, countries might resort to printing more money to meet obligations, compounding inflation.