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RE: Interview: economist and bitcoin maximalist Dominik Stroukal | CoronaVirus is a tragedy in itself

in Project HOPE4 years ago

the growth of financial markets is achieved only by the influx of new money

Companies are producing income - earning - all the time, this isn't an external influx. Market value can grow with these earnings, without additional external capital.

negative interest rates open scissors between rich and poor

They do, but the problem is older. I think it is a process which began in the 70s or 80s (90s?). Income of lower and middle classes grow slower than income of the rich. I see the reasons in automatization, robotization, globalization (low-wage countries entering the global economy and job market).

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Hi @deathcross, you are right, but certainly, new money and possible negative interest rates will put a kind of leverage on this process. So those who save a few pennies will have less, and those who can borrow millions will profit from that. Once we entered the debt spiral, it is no way from going out of it. Maybe in the future, there will be some fixed inflation rate and defined supply of some currency like in crypto, but I think it is decades far away from now.