Bubbles: Manufactured Illusions, Real Losses Financial bubbles don’t emerge from market exuberance—they are engineered through expansionary monetary policy. The central banks, led by the Fed, create conditions where malinvestments—projects that would never survive in a free market—suddenly appear profitable. Why? Because interest rates are artificially crushed, distorting the real cost of capital. When you lower interest rates without corresponding increases in real savings, you’re not expanding wealth—you’re redirecting it toward fantasy. Think AI startups burning cash with no profit model, or carbon-credit schemes propped up by subsidies. These aren’t investments. They’re illusions—temporary beneficiaries of a manipulated economy. Time Preference and the Fake Future In a true market, interest rates reflect how people value the present versus the future. Lower time…
Continue reading as a Citizen
Dedollarize News is free to read for signed-up members. Become a Citizen to finish this article, save what matters, and get the daily “While You Were Distracted” briefing.
No credit card required.
