The boom gets started with an expansion of credit.
The fed sets rates low, are you starting to get it?
That new money is confused for real loanable funds,
but it’s just inflation that’s driving the ones
who invest in new projects,
like housing construction.
The boom plants the seeds for its future destruction.
The savings aren’t real,
consumption’s up too!
And the grasping for resources reveals there’s too few.
https://youtu.be/d0nERTFo-Sk?si=mcHcwlGi-TPaf5q-
The claim being that to back a loan with new “printed” money is necessarily inflationary.
Loans backed with saved/invested funds are non-inflationary, because the saver gives up their ability to consume with those funds, in proportion with the consumption the borrower takes on.
It's not 3% for everyone, it's 3% for specific projects for low income housing.