Interviewed by WHUS in Connecticut:
Dr. Mark Thornton discusses what skyscrapers mean for the global economy, what causes and exacerbates business cycles, what the current economic landscape looks like, why people just aren’t saving money, and what the role and function of interest rates are.
Interest rates are a price which convey information, just like any other price in the economy. When the government and the Federal Reserve manipulate the interest rate, the communication network of prices is severed and becomes defunct. Producers are fooled into believing there are more resources available than actually exist, and savers are fooled into thinking that saving is not necessary / profitable / prudent.
Dr. Thornton discussed these themes more with Jack Thompson on the also on the Political Badger Show.
