Interest Rates, Taxes, Solar Energy and The Law of Supply and Demand

Listeners’ Questions, Peter’s Answers- December 20, 2012

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Ally in New York City, NY
I would like to hear your opinion in regards to how quickly gold and other commodity prices could react negatively to rising interest rates when the crisis you are talking about does happen.

Joseph in Lake Forest, CA
Regarding taxation, what would happen if the Earned Income Credit (EIC) were to be eliminated?  How much would be “constrained” to the Treasury rather than redistributed to qualified recipients?

Joey in Danville, CA
I am thinking of starting up a solar company and was wondering if this is now a good industry to be in, or a bad one.

Kingto in Houston, TX
I was watching one of your debates on YouTube and you mentioned that with respect to our national debt, if interest rate rise then our interest payments alone would rise also. But isn’t our current debt already pegged to a very low interest rate via our previous issues of bonds? Are those rates not fixed?

Ignacio in Uruguay
Does a diminution of the supply of goods and services, with a stable monetary base, has the same effect as inflation?