The Coin Files on Nostr: When central banks intervene in the markets by conducting open market operations ...

When central banks intervene in the markets by conducting open market operations (i.e. increasing the supply of money) or lowering policy rates the end result is always the same: an artificially lower cost of borrowing.

This creates distortions that encourage entrepreneurs to take on projects that would not otherwise be sustainable at the market determined cost of borrowing.

The economy becomes overleveraged and eventually leads to a bust when interest rates increase.

#Bitcoin fixes this.