THE PETER SCHIFF BLOG : An Unofficial Tracking of Peter Schiff and The Libertarian Austrian School of Economics
PETER SCHIFF
Wednesday, January 29, 2014
Interest Rates are determined by Supply and Demand
Interest rates are a very important aspect of money because interest rates represent a price. And like all prices, they are determined by supply and demand. The supply is all the savings, the demand is all the people that want to borrow money, whether its businesses, whether its college students, someone who wants to buy a car, the government... Everyone borrowing money is competing for this store of savings. Because for every dollar borrowed, someone had to save that dollar, someone had to not consume and put that dollar into savings so that someone else could spend it or invest it.
Labels:Peter Schiff ,Ron Paul
Interest Rates
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