The Price of Time: The Real Story of Interest

In the words of Bill Gross, who runs the world’s largest bond fund at the Pacific Investment Management Company (PIMCO), ‘bond markets have power because they’re the fundamental base for all markets. The cost of credit, the interest rate [on a benchmark bond], ultimately determines the value of stocks, homes, all asset classes.’

In sum, businessmen were misled by bank credit inflation to invest too much in higher-order capital goods, which could only be prosperously sustained through lower time preferences and greater savings and investment;

“An amount of money lent to a government, and the interest amount charged, is assumed to be risk-free because it is in turn assumed that a government can tax, borrow, or print further amounts of money to pay its debt. These three options are indeed available to a modern government, but one must not ignore the fact that the government has no access

Each took place at a time when conflicting demands on finite government resources were high, and rentiers wielded reduced political power.6 Currently we’re beginning to see the financial oppression in developed countries. In the United States, the United Kingdom, and Europe, governments have forced their social security funds to only buy government