High Interest Rates Are Healthy, Low Rates Are Economic Fentanyl

Low Rates: The Sweet-Tasting Poison

The economy today is addicted to low interest rates like a junkie is hooked on their next fix. Cheap money fuels asset bubbles—overvalued houses, bloated stock markets, and speculative nonsense like crypto scams—and keeps the façade of growth alive. But make no mistake: this growth is a mirage, built on the backs of middle-class savers and taxpayers.

Take a trip back to Housing Bubble #1 (2003–2007), where low rates and loose credit unleashed a frenzy. Marginal buyers—people who could barely scrape together a down payment—were lured into overpriced homes by lenders who knew the government would bail them out if it all went sideways. Meanwhile, developers threw up cookie-cutter subdivisions in the middle of nowhere, cashing in on the speculative frenzy.

When the bubble burst, the phantom wealth vanished. What remained were defaults, foreclosures, and cratered communities. And the so-called solution? Even lower rates, even looser credit. The Fed doubled down on the poison, turning the economy into a financial junkie, hooked on cheap money to survive.

Why High Interest Rates Are the Cure

High interest rates are the detox the economy desperately needs. They force discipline on consumers, developers, and financiers alike. Marginal borrowers—the ones destined to default—are shut out of the game. Risky projects that wouldn’t survive a stiff breeze are shelved. The result? A leaner, healthier economy that rewards prudence and punishes recklessness.

Here’s the dirty little secret: the elites hate high rates because they can’t gamble with your money when the cost of borrowing is steep. High rates shut down their Ponzi schemes and force real value creation. In contrast, low rates reward speculative excess, enabling Wall Street gamblers to pocket the profits while taxpayers eat the losses.

The Fentanyl Economy

The Fed’s endless rate cuts and liquidity injections have created what I call the "Fentanyl Economy." Just like the drug, financial fentanyl feels great at first—markets soar, credit flows, and everyone seems richer. But underneath, it’s killing the system. Defaults pile up, wealth inequality skyrockets, and the middle class is gutted.

When the inevitable crash happens, the Fed's answer is always the same: another hit of financial fentanyl. But with each dose, the economy becomes more fragile, more addicted, and less capable of standing on its own.

The Rigged Casino

The real kicker? The game is rigged. Big players—banks, hedge funds, and multinational corporations—get bailed out when their gambles fail. But regular folks? You’re on your own. Lose your home, your savings, or your job, and the Fed won’t lift a finger. The profits are private, but the losses are socialized.

This isn’t capitalism; it’s cronyism on steroids. And it’s all enabled by artificially low interest rates that distort the true cost of money and reward risk at the expense of stability.

The Path to Recovery

If we want a real economy—one built on saving, investment, and productive enterprise rather than bubbles and bailouts—we need to embrace high interest rates and tight credit. Yes, it will hurt. Detox always does. But the alternative is worse: a zombified economy lurching from one crisis to the next, with each collapse more devastating than the last.

Low rates are the sugar-high poison killing the economy from the inside out. High rates are the bitter medicine that can save it.

Conclusion: Choose Discipline Over Decay

The status quo has it backwards: low interest rates don’t save the economy; they destroy it. High rates impose the discipline necessary for long-term prosperity, while low rates encourage recklessness, inflate bubbles, and ensure collapse.

Don’t buy the lies of the Fed and their lapdog economists. Protect yourself, your family, and your wealth by getting out of their rigged game. Download Seven Steps to Protect Yourself from Bank Failure by Bill Brocius today and start preparing for the collapse they don’t want you to see coming. Get it now.

Stay sharp, stay skeptical, and stay free.