The Price of Time

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This work explores the history of interest rates and their unexpected effects, authored by a prominent financial historian and investment strategist. Interest serves as a crucial coordinate for all economic and financial activities over time, making the narrative of capitalism intrinsically linked to the concept of interest—the cost of borrowing money for individuals, companies, and nations. The author traces the evolution of interest from ancient Mesopotamia to contemporary global credit booms, addressing significant historical debates, such as usury in Restoration Britain and John Law's Mississippi scheme. Contrary to the common belief that high interest rates are detrimental, the author posits that excessive ease of borrowing can destabilize financial markets. The analysis extends to the present, where interest rates have plummeted to historic lows, including negative rates seen in Europe and Japan. This situation has led to economic insecurity, financial fragility, and various crises in the West, including rising inequality and elevated debt levels. The author also highlights how easy money has inflated a massive real estate bubble in China, contributing to an unprecedented credit and investment boom. As the global financial system nears another crisis, understanding interest rates is presented as essential for addressing future challenges.