In this sense the liquidity premium, like the inflation premium, is another interest rate distorter, and therefore another masker of the truth.
FORBES: What Is the Liquidity Premium? What Does It Mean?
Inflation is a destructive distorter. it fuels speculation and hoarding, as well as misdirects investment into normally uneconomic activities or stops the flow of productive investment altogether as people and businesses clutch their cash.
FORBES: We've Seen This Movie Before
Another great price distorter is a weakened currency.
FORBES: Magazine Article
Inflation is a destructive distorter.
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