- Poland became the 21st country to lower interest rates this year
- New record low to 1.5%
- Polish economy is strongest in three years
- Growing faster than the U.S. economy
- Policy conundrum: what is inflation target?
- Low inflation stimulating Polish economy
- Yet Central Bankers look to illogical Keynesian textbooks
- Where is the evidence that deflation is undermining the economy?
- There is no magical point where a good thing becomes a bad thing
- If they overcompensate and weaken the economy, they will be raising interest rates on an already weak economy
- Poland could afford to raise rates, however, if this policy fails, because their debt is low
- U.S. debt is so high, we can’t afford to raise rates in order to support the dollar
- When inflation picks up in the world and other central banks raise rates, the dollar will decline
- The Fed will be unable to curb inflation because we can’t afford to service our debt
- Ultimately this will precipitate a currency crisis when it becomes apparent that the Fed has run out of options
Polish Central Bank Joins 2015 Rate Cutting Party – Ep. 58
Peter Schiff is an economist, financial broker/dealer, author, frequent guest on national news, and host of the Peter Schiff Show Podcast.
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