Interest Rates Would Increase: The Other Side

The more I hear that people will have to pay higher interest rates, greater than 3% or so, the more I am amazed. You see there are two sides to this issue. For every dollar loaned there is someone getting interest because they are loaning the dollar. Thus if I have all cash and you still want to borrow money, because you cannot get your business to generate cash, then I would be more than willing to loan it at much higher rates.

You see there are two sides to this argument. One is easily solved, stop borrowing! Yes, you really don't need those new whatever. That of course means lower GDP but how much lower will it get. But if you want it then it will cost more, and in fact it will cost what it should without the FED artificially lowering the interest rates. Perhaps this action will result in an economic balance. Interesting thought!