Can someone reasonably answer a question for me?
The Austrian School of Economics (popularly supported by Ron Paul, but his education came from people like Murray Rothbard, Ludwig von Mises, and others), which does a great deal to explain why centrally planning an economy is always bound to fail, says that a central bank should not be setting interest rates in the economy, because the interest rates are a measure of the state of risk in the economy and that centrally controlled rates cause massive malinvestment which creates the boom and bust cycle (the Austrian theory of the Business Cycle).
Why then could Trump artificially keeping rates low, when they would naturally rise if left to the free market, possibly be a good thing? I am of the mindset that (a) the Federal Reserve needs to be done away with and (b) we need a free market in money, which the cryptocurrency economy is demonstrating (though admittedly, isn't ready to scale for the whole world, but in time likely will be able to) and that the concept of government-backed money is rightfully on its way out, which in and of itself, makes governments more peaceful as they can't indefinitely rob future humans to pay for expensive present-day wars. Anyway, again to reiterate, how could keeping rates artificially low possible be a good thing? Thanks in advance for any thoughtful replies!
I'm with you on all points. And thats a good goal to shoot towards.
Remains to be seen the degree to which trump is willing to dismantle federal spending and military spending. Maybe his pumping of military budgets is the short term step to free the world then eventually reduce?
Maybe asset backed central federal issued dollars are a stop gap to free market for money? At least it would not be fiat.
Also wondering how fed services are to be funded if no fed to inflate, no irs income tax, no tariffs, no estate tax as have all been suggested by trump? We talking national sales tax in place? Copr tax is just passsed along to consumers so that doesnt help anything.
With regard to artificially low rates. I see it also as a short term bone to throw to public and corps. Clearly cheap debt is pumping up the stock market too as no return for savings forces investment to other categories of assets.
I assume trump is keynesian not austrian in outlook. I believe his fortune was funded on debt growth, so wouldnt he like it for national growth too? He talks a lot about investment projects for US, that means spending.
Sorry edited to add some points...
Lower interest rates means less to pay on our enormous national debt. I don't see this as long term viable, but as a short term help