Podcastnewshubb
Advertisement Banner
  • Home
  • Marketing Podcasts
  • Crypto Podcasts
  • Contact
No Result
View All Result
  • Home
  • Marketing Podcasts
  • Crypto Podcasts
  • Contact
No Result
View All Result
Podcastnewshubb
No Result
View All Result
Home Crypto Podcasts

How Cheap Credit Distorts Money with Joe Consorti — What Bitcoin Did

admin by admin
October 26, 2022
in Crypto Podcasts


Joe Consorti is a Market Analyst at The Bitcoin Layer. In this interview, we discuss Austrian economics, Credit Suisse & the risk of large scale defaults, price distortions and how Bitcoin fixes this.

– – – –

When faced with economic turmoil, central banks have a few tools they can turn to, one of which is interest rates. Since interest rates are the price to borrow money, and prices are emergent, manipulating rates is an intentional distortion analogous to fixing prices. Rates instead should be a factor of the supply and demand of credit, risk of default, and a reflection of opportunity cost.

However, during the financial crisis in 2007/2008, the US federal reserve had little option but to step in and repeatedly cut rates. They did this in an attempt to prevent complete collapse and to restart the credit-seized economy. Rates went to basically zero (and even negative in some countries), and since 2008, we have been in an era of cheap credit.

Now, we are potentially in the midst of another financial crisis. Countries across the globe are battling with inflation issues for a raft of reasons, including supply-side constraints, excessive money printing during covid, and war in Europe causing energy shortages. To battle this, central banks are raising rates in an attempt to regain control.

So does cheap access to credit really boost the economy and stimulate growth, or has it prolonged an artificial bull market in equities, over-financialised assets, incentivised mal-investment, added to the growing wealth divide and played a key role in near double-digit inflation?



Source link

Previous Post

Texas is Bitcoin Country with Will Cole — What Bitcoin Did

Next Post

The Risks of Hyperbitcoinisation with Rob Hamilton — What Bitcoin Did

Next Post

The Risks of Hyperbitcoinisation with Rob Hamilton — What Bitcoin Did

Recommended

The Fourth Turning Revisited with Brandon Quittem — What Bitcoin Did

3 weeks ago

Beginners Guide Part 2/3 – What is Bitcoin? With Harry Sudock — What Bitcoin Did

2 weeks ago

Bitcoin is the Answer with Preston Pysh — What Bitcoin Did

4 months ago

Everything Is Marketing | Kevin Smith — CPG Packaging, Whitebox Testing, & 4 Steps to $2M+/yr

7 months ago

Why Bitcoin is an Inflation Hedge with Steven Lubka — What Bitcoin Did

7 months ago

El Salvador’s Bitcoin Bond with Lyn Alden — What Bitcoin Did

6 days ago
Podcast-(-White-) (1)

© Podcast News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • Marketing Podcasts
  • Crypto Podcasts
  • Contact

Newsletter Sign Up.

No Result
View All Result
  • Home
  • Marketing Podcasts
  • Crypto Podcasts
  • Contact

© 2022 Podcast News Hubb All rights reserved.