Posted on 05/12/2020 10:54:31 AM PDT by aimhigh
Not just a bad idea, a destructive idea right out of Obabma playbook.
Trump should know better! How dare he think allowing big banks etc, use middle class money free is in any true conservative’s bag of principles!!!!
Were I a White House reporter, Trump would hate me more than the two yesterday.
And yes, I supported Trump in late, 15 early 16, and worked hard for him against all the ridicule.
He is knotting my stomach.
How many times has the media deceptively edited what trump has said? I have lost count. If I was at home I would go to Trump’s account to see if there is missing context.
No.
NO.
NO!
Well, it was his tweet and it was in quotation marks, but I guess there could be something missing.
If you can’t read an article and look up a tweet (and I did, and it’s there as of 4 hours ago on his Twitter feed)-then you are just as bad as the left. Totally disregarding everything negative and falling lockstep in line makes one no better than an Obama supporter-especially with an idea as bad as negative interest rates. You should do your due diligence and then condemn this instead of shooting the messenger.
If you listen to what Buffett and Dalio and others (at their level) have said in recent days, we're on the precipice of a 1930s-level depression (or worse). It may be unavoidable.
But anything that puts capital into the hands of businesses is, at this time, the primary and only goal. Main Street can't solve this.
There’s not. Go to his Twitter account. It’s accurately quoted. Insane.
Honestly, I don’t understand why he is advocating it.
Dan Bongino had a great piece about negative interest rates in an attempt by the Japanese government to get people to withdraw and spend their money they had in the bank.
All it did was boost the personal safe business...
The obvious answer is it would devalue our debt with them, and that would be good, but...that seems like a poke them in the eye thing right now.
I am no economist, but I have heard that if interest rates go down, inflation goes up, and if the dollar that was worth one dollar is now valued at 80 cents, instead of a trillion dollars in current valuation of debt, it becomes 800 million dollars in debt, or something along those lines.
Hell, I have probably got it backwards or upside down, but it just seems odd to call for that.
It wouldn't.
I heard that when they tried negative interest rates in Japan some time back, all it did was get people to withdraw their money and buy safes instead of withdrawing it and spending it, which is what they were hoping for.
I just has the smell of a parlor trick rather than a real economic tool.
I wonder who exactly is whispering this in his ear.
Deflation is the answer, but nobody wants to allow that to happen. .Gov has been propping up asset prices for years. House prices, real estate, all need to adjust to the idea that this is a broke country with trillions in debt; while AI, global wage arbitrage and innovation will be the ‘destruction’ of the future.
KEY TAKEAWAYS
Negative interest rates are an unconventional, and seemingly counterintuitive, monetary policy tool.
Central banks impose the drastic measure of negative interest rates when they fear their national economies are slipping into a deflationary spiral, in which there is no spending—and hence, dropping prices, no profits, and no growth.
With negative interest rates, cash deposited at a bank yields a storage charge, rather than the opportunity to earn interest income; the idea is to incentivize loaning and spending, rather than saving and hoarding.
In recent years, several European and Asian central banks have imposed negative interest rates on commercial banks.
In harsh economic times, people and businesses tend to hold on to their cash while they wait for the economy to improve. But this behavior can weaken the economy further, as a lack of spending causes further job losses, lowers profits, and prices to drop—all of which reinforces people’s fears, giving them even more incentive to hoard. As spending slows even more, prices drop again, creating another incentive for people to wait as prices fall further. And so on.
https://www.investopedia.com/articles/investing/070915/how-negative-interest-rates-work.asp
Ok...now I see what’s going on and why he wants them. He is anticipating a way to slow start to the economy. These governors with their phase in approaches and the “team” he has assembled are wanting to take things way too slowly for his liking. Thus causing a deflationary spiral...which essentially has already started as thousands of small businesses are already gone forever in less than 54 days.
With so many businesses opening at 10-40% capacity and the looming food crisis...we’re already in a deflationary spiral ...one that our government created.
So, we pull our savings out of the bank, stuff it in 5e mattress, and guard it with the 12 gauge?
No you pull your money out and spend it! Negative rates are to spur on the economy...a stimulus.
The problem with Trumps desire to do this is...there’s no economy. No one can really do business right now or for the next few months.
Thus, we are already in a deflationary death spiral and unless these governors and health experts wake up...we’re going to have way, way more trouble happening before November even remotely arrives.
LOL, I am a relative ignoramus on these things, so I am bowing out of this discussion!
I only became interested in passing on this subject when the stimulus bill had a component in there for electronic currency proposals, and a follow up discussion on this.
I am already out of my depth!
No worries...
If you can wrap your head around this concept, it means we are in a heap load of trouble unlike we’ve ever seen. Something that will make the Great Depression look like a walk in the park.
I understand why Trump would consider it, but it isn’t the right course of action for our nation right now. We have essentially a closed economy with deflating growth. We have got to get things open and prosperous.
That’s right- Savings accounts will be a way to lose money as the banks will charge you to keep your money in them. We could go back to mason jars. But It seems that they want to force a cashless society on us too. And you can’t keep digital dollars in a mason jar.
Trump is doing a lot of great things. But as I observe his comments and actions relating to matters like this I am constantly getting the feeling that he is all in for the big brother aspect of society. He may well support the policies that lead us to a world where we are all carefully monitored and controlled. 5G is going to be huge part of that.
Anyone ever heard of smart dust?
https://www.forbes.com/sites/bernardmarr/2018/09/16/smart-dust-is-coming-are-you-ready/#141c3d235e41
I admit, hearing Trump even float this fills me with a sense of dread.
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