Dave Smith

Lower the interest rate every time things are going good?

You know, it's so funny that so much of the, you know, from, of course, the reaction to the Great Recession in 2008 was to lower interest rates to the lowest rate they had ever been and keep them there for a decade.

This is really what led to the Trump populist movement.

And he still to this day doesn't even realize that, that there's any connection between the two.

And then he seems to just say, if inflation comes, then you deal with that.

But how would you deal with that?

Well, I mean, traditionally you would deal with that by raising rates.

I don't know.

It's just the economic illiteracy here is off the charts.

Any thoughts, Rob?

Well, it's just, I mean, it's such a backward understanding of the fundamentals of the economy.

You know, like I said, like, why is it that raising interest rates is so crippling to the economy?

In the same sense that, like, if you don't have a mortgage and you're just renting, then the interest rates going up maybe doesn't affect you nearly as much.

But if you have a mortgage, let's say it's an adjustable rate mortgage just for the sake of argument here, then, like, that would affect you quite a lot.

The reason why rates going up are...

harmful to the economy is because our economy is such a debt based economy.

But what is lowering rates?

What is that?

It's encouraging more debt.

That's the whole idea.