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Central Kentucky | When interest rates rise, money is removed from circulation, making it's way back to the treasury. Like letting air out of a balloon. Do it long enough and we have a credit crunch. At yhat point there are more assets than money available to keep things greased up for trading all the time. Results in lower prices because there isn't enough currency available to sustain price increases. Like my dad said about trying to start farming in the eighties "there just wasn't enough money". Took me a while to understand what that meant. | |
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Another M2 chart
