- Joined
- Jul 20, 2005
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yeah yeah yeah, but how are you going to increase that production before your competitors do? we've already taken the money out of the production side to give it to the demand side. if more people want my toys, but i can only make 1,000 toys a month, and the capital to expand my production has already gone into Bonds to be given to the people now using that same money to buy my toys.....
....then all that happens is i increase the price of my products; my production capability is shackled.
Then one of your better-financed competitors will do it, and you'll go out of business. In either case, the aggregate effect is more production.
In any case, the federal funds rate is close to its all-time low right now. It's unlikely that this is having a significant negative effect on your ability to produce more, as the interest rates that T-bonds are paying are not exactly attractive for lenders...
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