the Silicon valley of the last 15 years was a 0% interest rate phenomenon, going to take a long time for normalcy to return after a decade of distortion to organic market forces
What? Lowering interest rates raises inflation.
> See today's print
Can you link? Not sure what your talking about
Markets are a technology, they don't come from nature. Markets are an intentional product of governments. Anthropologists haven't found a single stateless society that voluntarily chose markets.
In order for what you say to have meaning, "stateless" would almost tautologically require "no market." But clearly states are themselves a natural aspect of aggregate human behavior in resource limited environments.
ZIRP means that huge capital managers (sovereign wealth funds, pension funds, 401k managers, etc.) get very, very little money on the super-safe stuff they like to buy.
They need to make returns somehow, so if a VC is promising them 15% returns, that sounds quite promising compared to T-Bonds that return 1.5%!
But over the last two years, the yield on super-safe investments now looks more like 6, 7, 8, 9%. That makes a high-risk investment like VC much less attractive, by comparison.
If VC is less attractive, less capital flows to their funds; smaller VC funds means much more discerning, stingy startup investment.
No need to gamble it anymore on tech companies.