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7/23/2025, 1:29:36 AM
https://x.com/Breaking911/status/1947756241113014707
7/15/2025, 7:03:17 PM
>>510459776
>1 dollar loaned is 10 dollars printed. High interest rates = less loans, less printing.
You don't get it.
1. Raising interest rates increases the cost of rolling debt over because the interest payments are larger for the same amount of principal being issued.
2. The debt has to be constantly rolled over merely for the money supply not to contract, let alone grow geometrically.
3. Capitalism requires perpetual geometric growth of the money supply simply to continue operating.
4. Interest payments, even if made with fictional legal tender, aren't cancelled out of existence like payments towards loan principal are, if those payments are made with fictional legal tender issued by other banks than the central bank.
5. Increasing interest rates means that more monetary units, as a percentage of the amount of new monetary units constantly created by non-central banks, remains in circulation as debt is being serviced. Which grows the money supply in a way which favours those with incomes directly or indirectly derived from interest rates.
The only way that raising interest rates lowers inflation is if it causes or increases debt default. Otherwise it accelerates inflation, if the debt gets rolled over at higher interest rates.
>1 dollar loaned is 10 dollars printed. High interest rates = less loans, less printing.
You don't get it.
1. Raising interest rates increases the cost of rolling debt over because the interest payments are larger for the same amount of principal being issued.
2. The debt has to be constantly rolled over merely for the money supply not to contract, let alone grow geometrically.
3. Capitalism requires perpetual geometric growth of the money supply simply to continue operating.
4. Interest payments, even if made with fictional legal tender, aren't cancelled out of existence like payments towards loan principal are, if those payments are made with fictional legal tender issued by other banks than the central bank.
5. Increasing interest rates means that more monetary units, as a percentage of the amount of new monetary units constantly created by non-central banks, remains in circulation as debt is being serviced. Which grows the money supply in a way which favours those with incomes directly or indirectly derived from interest rates.
The only way that raising interest rates lowers inflation is if it causes or increases debt default. Otherwise it accelerates inflation, if the debt gets rolled over at higher interest rates.
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