What should the interest rate be? I am sure that I have covered this before numerous times but here is a list that I have not itemized before. The content on this site is provided as general information only and bitgold 2016 camaro not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy.
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Consult your investment adviser before making any investment decisions. February 27, 2: Low rates are not inherently bad. Artificially low rates are the problem. The cost of money is probably the most fundamental piece of information in capitalism. If it gives off false or misleading information you get all of the distortions listed above. One distortion not mentioned, and which I think is very important, is that artificially low rates paradoxically cause less consumer spending.
By that income was down by half. So that Boomer has had to progresively save more and spend less, and has deferred retirement bitgold 2016 camaro beyond his original target.
Like Liked by 2 people. February 29, 9: Even Mish has some figures somewhere that showed unemployment being under bitgold 2016 camaro, as it does not include those who want to work but have stopped looking. A very large chunk of those folks are in the Boomer demographic, as that age bitgold 2016 camaro is significantly below its historical average of work force participation. February 29, Maybe you should look at the chart at http: All we can say bitgold 2016 camaro that, if it was a twenty year time lime, we are 8 bitgold 2016 camaro closer to it.
Japan leads bitgold 2016 camaro this regard. Bitgold 2016 camaro has used fiscal deficits and easy money for twenty five years — lately, it is exporting the effects of these failed policies across the globe by manipulating currency and government bodn yields on a global basis.
February 27, 8: Therefore, the time value of money is begging to reflect that, despite all the efforts to prevent this bitgold 2016 camaro the monetary authorities. Diogenes of Sinope said: Nice thread, I hope Henrique gets it. Raise interest rates and give all wage earners a raise via restored rightful spending power. Laissez fair capitalism died decades ago.
February 27, The politicians are also to blame because they not only let them do it, they enabled them. February 27, 3: I would add that in order to force negative interest rates on the public, The Powers That Be must remove most or all paper money from circulation.
If you know that money in the bank bitgold 2016 camaro be stolen from you, then the smart thing to do is to take your money out of the bank and hold it as paper money. It reminds one of the scene in Casablanca where the Vichy French officer is shocked to discover that gambling is occurring in a casino.
Removing the largest denomination bills bitgold 2016 camaro drastically reduce the total value of the money in circulation, and reduce the potential drain on deposits from a run on the banks. This also allows banks to charge fees and allows the government to track your spending and tax it. When I get a haircut bitgold 2016 camaro a franchised hairstyle chain, I pay the corporation for the actual haircut with a credit card but always tip the girl in paper money.
One more thing — what if the power goes out and stays out, or the Internet goes down and stays down? If all money is electronic, and a terrorist cyberattack or a solar storm or a hurricane take the grid down, how will you pay for food and gasoline and other necessities without paper money?
When EBT cards stopped working at a Walmart for one day there bitgold 2016 camaro near-riots. Imagine this scenario for all e-money, for the entire country, for a week. These idiot economists are now reaching way too far. Their harebrained theories will actually kill people the first time that bitgold 2016 camaro a very fragile system of e-money encounters any significant shock.
February 27, 7: Without cash and only Emoney we will be at the mercy of terrorists both domestic and external. China would love it. Politicians and bureaucrats always seem bitgold 2016 camaro be totally blind to unintended consequences.
As you pointed out, Nemo, the bitgold 2016 camaro of electronic currency could be a real sumbitch. February 28, Think of what you will not be able to do. The drivers will not leave their families home without power. Paychecks will not be deposited, Social Security checks will not be deposited.
Hospitals will not operate, nor will any other business. The most valuable things to have? Ammunition for barter and medical supplies. Most gas stations also sell diesel fuel, so they can power generators to pump their gasoline and diesel. A loss of electric power from the grid will not mean zero electricity anywhere, as there are some emergency generators and self-powered facilities. When Hurricane Sandy hit New York a few buildings had power, and generators were used for high priority tasks such as pumping diesel and gasoline at gas stations.
However, most people did not have access to the Internet. A few were able to recharge their smartphones at the tiny number of self-powered buildings, but most just waited things out. If there is a long-term outage, then the reserves of fuel will be exhausted. Emergency stopgaps operate only for for so long before they bitgold 2016 camaro depleted. Most cell phone networks have backup power for a limited time in an emergency.
Have fun paying bitgold 2016 camaro gas with e-money when the power is out, the cell bitgold 2016 camaro batteries are dead, and the only available generators are running the pumps at the gas stations. I Hypothetically could there not be negetive interest rates in a situation were you have large rates of deflationary?
February 27, 9: There could Never be negative interest rates. Once again — it implies someone would rather have 90 cents bitgold 2016 camaro than a dollar today That is illogical.
Yes, a dollar is worth more tomorrow so would you bitgold 2016 camaro have a dollar or 90 cents later Mish.
Alf, you seem to be confusing deflation with negative interest rates. They are 2 different things. There are no good or bad rates as long as they are set by individual agreement. In that case they will reflect economic and monetary reality. Under the current financial and monetary system rates may be set at a value chosen by a supervisory board and at a value they judge apt for everyone.
This attempt at management is unhinged from the meaning of a rate. A rate is a transactional appraisal whose parameters are defined by and contained within the act of agreement, and based on the understanding shared at that point. It should not be allowed that a third party later assigns further value or imposes loss of value to that agreement.
This is only able to be achieved because fiat money is able to be as bitgold 2016 camaro as created for nothing, for free, with the issuer able to offer it at the rate he chooses — if lower there will be takers.
That you repay within a given time is added, or penalty for not doing so. Also the ability to repay is judged by the length of the loan. The slacker these concepts become, the closer to junk the currency. The junkier the currency, the harder its valuation in business exchange, the more unstable the whole system becomes. In reality, when all is said and done, fiat may be judged to have been a negative concept, though there is no certain way to judge but for its infraction on what is considered just, the meaning of which is open to interpretation.
February 27, 4: February 27, 5: What has happened in, for example, the price of personal computers? Prices have massively deflated for a given capability, right? What has happened to the penetration of ownership and capability of those computers and what their owners can do with them over the same time? Is that good or bad?
Does deflation make it harder to pay debts? Debt, in the general sense, is bad. In all other cases it either simply pulls forward demand in which case it does nothing or it allows you to temporarily but not permanently live beyond your means, which is manifestly bad because when you stop doing that you must then live below your means to pay it off!
Absent intervention in the economy the natural process of price is mildly deflationary. Having to work 5 hours instead of 10 to pay for your weekly food intake, or 1, hours instead of 2, to pay for a car is positive for the vast majority of the people in the economy. It is only the debt merchants that want things the other way around.
February 27, 6:
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