If you lower the intrest rates you can encourage spending because people choose to invest rather than save when rates are low. If you hold the rates low for a prolonged period of years the markets get hot, and inflation starts to increase. The housing market inflated almost 100% in 5 years in most of the wealthy parts of the country. That should be a clear sign that the rates are too low and need to be raised. Ben Bernanke kept the rates low allowing the market to continue. He knew exactly what was going to happen, because I knew a year before. The hot markets started to slow, and the bankers Ben conspires with told him to lower the rates more. If he had raised the rates and allowed the market to slow, economic elasticity would have started to catch up, instead he rode the horse until it died.
The Federal Reserve is a socialist economic system that manipulates the value of the currency. In a true free market there should be no need for market and currency manipulation. The Federal Reserve is a taxpayer embezzlement scam controlled by foreign bankers and inside traders.
Duration : 0:3:1
