MANNARINO: A system devouring itself to stay alive

Calling on a central bank to lower rates and therefore debase the currency is a dream come true for a central bank, as it allows them to inflate

BY GREGORY MANNARINO, TradersChoice.net

How Artificially Suppressed Interest Rates Debase the Currency:

1. Cheap Money = More Borrowing.

When central banks lower rates, borrowing becomes easy and cheap.

Governments, corporations, and consumers pile on debt.

To lower rates requires a central bank to create/print VAST amounts of currency to buy debt. A central bank cannot just say “We Are Going To Lower Rates,” they have to create the currency out of thin air to buy the debt—a process which is MASSIVELY inflationary.