Lowering Interest Rates: A Recipe for Economic Disaster?

Lowering Interest Rates: A Recipe for Economic Disaster?

GDP growth looks great on paper—but what if it’s only rising because policymakers keep slashing interest rates? When borrowing becomes easier than investing, consumption drives the numbers, not real economic progress.

This isn’t sustainable. Sooner or later, people hit their debt limits and can’t borrow—or spend—anymore. The cycle repeats: interest rates drop even further below the optimal level, creating instability instead of genuine growth.

📺 Watch DIOTALK EPISODE #221 as we break down why chasing short-term GDP growth through cheap credit could be setting the stage for a bigger economic crisis.