If interest rates are below inflation, asset prices should technically go to infinity
We have about 15-20 years looking ahead of zero interest rates and much much higher stock prices.
We need to unlink consumer credit availability from credit worthiness, like we did with housing. But its coming. Barack will do what he can to create and enhance the political dream economy.
Theoretically you are correct.....that being said, it is hard to tell where interest rates would really be if the Fed were not suppressing the market from finding the true price. My guess is, if markets were left to their own devices you would see interest rates much closer to 10% then 4%.
Then, a wage for labour is technically nothing. We need to be paid by real thing, i.e., flour, milk, eggs, vegetables, or fruits not by just a paper. People are technically volunteering for higher ends. Like self-achievement ... Like being a Saint ? Right ? If not, why work for nothing ?
Just slaves work under this so-called circumstances, which is hard to be called a system any more.
It's just delusional.