36. Theory of the Thought Leader (ft. Riley Quinn)
This Machine Kills
00:00
What's the Interest Rate?
Central banks create bank deposits in large commercial banks like u b s or bank of america. Those banks then can lend that money to venture capitalists, small businesses and even themselves. A negative interest rate means if i buy a bond at a negative interest rate, i'm paying you to lend me money because i think the amount of money i'm paying you is going to be less than inflation. That encourages bizarre business models such as net flick which has never made any money. And so the idea is, when we say a wizard will do it, this is how we get the wizard to do it. But i've just dived checking pretty and the wizard hasn't done it yet.
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