HOW SUPPLY CHAINS AND INTEREST RATES INTERACT

 20 tweet thread how Interest Rates and Supply Chains interact, by #krisonomics . Opens on twitter

20 tweet thread how Interest Rates and Supply Chains interact, by #krisonomics. Opens on html web page.

LECTURE

0% interest rates are possible only in a centralized economy, THAT IS NOW..

Capitalism functions normally at 2% to 6% annual interest rates.

Capitalism clogs down at 10% and higher annual interest rates.

END OF LECTURE

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Corollary I:

Since Money Creation is Central, the creator of the money (Government) can control the Interest Rates.

It is the Government (Central Bank) which ALLOWS Interest Rates to self manage within a range or DECIDES to manage them 100% of the time.

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Corollary II:

Centrally created Money allow the creation of Integrated Supply Chains.

Non centrally created Money (if allowed by the Government) cause the creation of NON-integrated supply chains.

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Corollary III:

0% annual interest rates = Soviets

2-6% annual interest rates = functional Capitalism

10% and higher annual interest rates = Mafia extortion style chaos

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Corollary IV:

Supply Chains react to Interest Rates set by the Government.

Government makes Interest Rate decisions on Political election gains (Influence from various Lobbies), nothing to do with good management.

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Corollary V:

Government uses logic to set interest rates at a logical level only after breakdown of supply chains becomes self evident when entitlements must be cut.

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Corollary VI:

A person is obligated by physical necessity to exist and to feed the family to work/produce adequately to achieve that.

Over-producing way and beyond what's needed by physical necessity of self existence, is INCENTIVISED only by Higher Interest rates

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Corollary VII:

Entrepreneurs are people with The God Complex, theologically urged to produce more than adequately required to physically self exist.

Unless Interest Rates are high enough to justify the Risk Taken, their God Complex will not be triggered.

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Corollary VIII:

A person with The God Complex (known as Entrepreneur) over produces more than required to self exist physically, only if the Excess Output is LENT OUT AT ACCEPTABLE INTEREST RATE.

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Corollary IX:

The only way for the Government NOT to set the Interest Rates, is for the Government to cease creating money.

If that were to occur, then the Market Place becomes Mafia Style Chaos, where the strongest sets the Rates.

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Corollary X:

If the Government creates Money to give to anybody wanting it, then interest rates automatically become 0.

That was the case with Soviets, or the case now with the Fed and ECB creating money depositing them in anybody's account wanting them.

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Corollary XI:

0% overnight USD interest rates means centrally controlled supply chains.

10% and higher overnight USD interest rates means Mafia controlled supply chains.

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Corollary XII

The Government controls Money Creation, and Money Removal as well.

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Corollary XIII

When the Government sets rates at 0 by supplying anyone with any amount of money requested, then The God Complex People (Entrepreneurs) gradually stop over-producing.

Supply Chains break down over a certain period.

That is now under way.

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Corollary XIV

The Government is always obligated to REMOVE money from circulation in order to stop break down of supply chains, as soon as the breakdown becomes self evident and visible to the most ignorant strata of the society, which rises in protests.

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Corollary XV

Supply Chains are built/destroyed via an incessant interaction of The God Complex People (known as Entrepreneurs) and the Rest of the Population which simply wants to eat, drink, have kids and then die.

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Corollary XVI

REMOVAL of currency in order to avoid breakdown of supply chains is done via:

- Rate hike .......along with

- Central bank buying digital currency, thus extinguishing it.
- Shredding/burning of paper money.

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Corollary XVII

Negative Rates are a novel way of trying to REMOVE currency ...without... raising rates.

For that to have effect, the Government must stop creating them in the first place, which is not happening.

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Corollary XVIII

Scarcity of Money = Higher Interest Rates

Abundance of Money = Lower Interest Rates.

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Corollary XIV

Political Economy cannot overcome the Law of Entropy.

The only person to have overcome the Law of Entropy is God himself, Jesus Christ.

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Corollary XX

0% rates = Soviet supply chains

10% higher overnight interest rates = Afghanistan supply chains

2-6% overnight interest rates = Capitalist supply chains.

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