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IPFS News Link • Economy - International

Today's Negative Rates Are the Path to Poverty

• by Doug French

ADG consulted interest rate historians Sidney Homer and Richard Sylla, who opined, "nominal negative yielding debt had never been seen in material size in the 4,000 years of interest rate history prior to the current cycle."

Economist Ludwig von Mises never imagined such a thing, writing in Human Action,

There cannot be any question of abolishing interest by any institutions, laws, or devices of bank manipulation. He who wants to "abolish" interest will have to induce people to value an apple available in a hundred years no less than a present apple. What can be abolished by laws and decrees is merely the right of the capitalist to receive interest. But such decrees would bring about capital consumption and would very soon throw mankind back into the original state of natural poverty.