Wouldn’t it be easier to say that the FED, though inflation, creates a disconnect between the market rate and natural rate of interest? Theoretically speaking, you can’t have negative “real” interest rates.
In a free market, you can’t have negative “real” interest rates. People would hold onto gold and silver instead of investing for a negative rate of return.
The Federal Reserve causes the actual interest rate to be far lower than it would be in a free market.
With fiat money, people can’t defend themselves from theft via inflation by holding cash. If you hold cash, you still get ripped off by inflation.
The problem is that fiat money has an intrinsic value of zero. The banksters are profiting off the arbitrage between the “fair” value of fiat money (zero) and its current value (nonzero).
When you realize “fiat money has an intrinsic value of zero”, then there’s a division by zero error in all other economic calculations.
Its impossible because if we have negative interest rates, investments were also be negative.
Yeah, which is quite impossible. Lamborghini engine.