[ExI] perspective on covid

John Clark johnkclark at gmail.com
Mon Mar 9 18:53:08 UTC 2020

On Mon, Mar 9, 2020 at 11:37 AM spike jones via extropy-chat <
extropy-chat at lists.extropy.org> wrote:

 > *Low interest rates seduce the US government into borrowing more and
> more money.  In addition, plenty of homeowners have borrowed money against
> their homes at low interest rates, hoping to invest in the stock market
> with their equity.  This sets up a ticking time-bomb.*

Low interest rates like we have now means there is a *HUGE* pile of money
wanting to be loaned out and a much smaller pile of investors wanting to
borrow money. And a small inflation rate like we have now means there are
more machines that are making things that people want to buy than there are
machines that are making dollar bills. Incidentally just today the price of
West Texas Intermediate Crude Oil dropped by 22%, the largest one day drop
in history. So it looks like inflation isn't going to be a big problem
anytime soon but don't celebrate too much, inflation wasn't a big problem
in 1929 either. Speaking of 1929, the market hasn't closed yet but as of
right now the Dow Jones Industrial Average is down over 2100 points.

John K Clark
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