WHERE ARE ALL YOUR TAX DOLLARS GOING AS THE ECONOMY AND INFRASTRUCTURE CRUMBLE
Favicon 
prepping.com

WHERE ARE ALL YOUR TAX DOLLARS GOING AS THE ECONOMY AND INFRASTRUCTURE CRUMBLE

FOR YOUR PRECIOUS METALS NEEDS SD BULLION IS THE BEST PLACE TO SHOP IT'S WHERE I BUY. https://sdbullion.com/jbtv THE BEST KNIVES IN THE WORLD: https://tkellknives.com/?ref=JEREMIAHBABE ? PLEASE HELP TO SUPPORT MY CHANNEL. PLEASE SEND MAIL & DONATIONS TO P.O. BOX 580937 NORTH PALM SPRINGS CA 92258-0937 ? PAYPAL DONATIONS: https://jeremiahbabe.com Here’s how low interest rates generally impact the economy: 1. **Encourage Borrowing and Spending**: With lower borrowing costs, individuals and businesses are more likely to take out loans for big purchases (like homes or cars) or invest in expansion. This increased demand can drive growth in sectors like housing, retail, and infrastructure. 2. **Boost Investment in Stocks and Risk Assets**: Low interest rates often make traditional fixed-income investments (like bonds) less attractive. As a result, investors might seek higher returns from riskier assets, like stocks or real estate, which can lead to rising asset prices and increased market activity. 3. **Lower Debt Servicing Costs**: For governments, corporations, and consumers, low interest rates reduce the cost of servicing debt, freeing up resources that can be spent elsewhere in the economy. 4. **Encourage Business Expansion**: Businesses are more likely to take on debt to expand operations, launch new products, or hire additional workers when interest rates are low. However, there are some potential downsides to prolonged periods of low interest rates: - **Asset Bubbles**: Extended periods of low interest rates can lead to excessive risk-taking, pushing up asset prices beyond sustainable levels. For example, this has been a concern in the housing market and with certain stocks in past years. - **Income Inequality**: While low rates can benefit borrowers, they can hurt savers—especially retirees who rely on interest income. Low yields on savings accounts and bonds can widen the wealth gap between those who have assets that benefit from rising prices and those who don't. - **Inflation**: If low rates persist for too long, they can stoke inflationary pressures. With more money circulating in the economy, demand can outstrip supply, pushing prices up. - **Weakened Currency**: Low interest rates can lead to a depreciation of the currency, making imports more expensive and potentially leading to trade imbalances. So while low interest rates can help the economy in the short run, they can also create risks if maintained for too long or if they aren't accompanied by broader structural reforms to improve productivity and innovation.