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Thread: Negative interest rates

  1. #11
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    They will push to move to a cashless banking system.....
    Live Free or Die

  2. #12
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    Negative interest rates has fail written all over it
    “We cannot defend freedom abroad by deserting it at home.”
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    I am the powdered donut KING!!!

  3. #13
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    Unless you operate in cash or barter the government already knows pretty much where every dollars goes/is. Any and all deposits and withdrawals of $10,000 or more are reported to the treasury (sp)

    And the last thing any democratic government wants is to restrict money flow at this point.

    Joe - NY

  4. #14
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    I know lots of smart people on both sides of the arguments (for/against) can argue till the cows come home. My question is this: Is their any instance of a government using negative rates? If so, What was the end result?

    I don't pretend to understand the inner working of a global economy. I am simply not smart enough to even try. But I am smart enough to look at the past. Just my thoughts negative rate.
    Vox Populi!

  5. #15
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    Quote Originally Posted by porkingporkpork View Post
    I know lots of smart people on both sides of the arguments (for/against) can argue till the cows come home. My question is this: Is their any instance of a government using negative rates? If so, What was the end result?

    I don't pretend to understand the inner working of a global economy. I am simply not smart enough to even try. But I am smart enough to look at the past. Just my thoughts negative rate.
    Some banks in Europe went to negative interest rates last year, I believe, and Japan most recently went there in January of this year: http://www.bloombergview.com/quickta...interest-rates

    Probably keep an eye on how it unfolds in Japan and that might be a good indicator of what could happen here. I would think so anyway.

  6. #16
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    Quote Originally Posted by porkingporkpork View Post
    I know lots of smart people on both sides of the arguments (for/against) can argue till the cows come home. My question is this: Is their any instance of a government using negative rates? If so, What was the end result?

    I don't pretend to understand the inner working of a global economy. I am simply not smart enough to even try. But I am smart enough to look at the past. Just my thoughts negative rate.
    Several European are using neg. interest rates and Japan just started I believe...
    Live Free or Die

  7. #17
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    I'm not even sure Negative Interest rates are legal in the U.S.

    They would be opening Pandora's box if they did this. They would be inundated with lawsuits
    Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety.

  8. #18
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    Times like these make me glad I don't have much money in the bank.

  9. #19
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    really if you think about it, just a continuation of central bank interest rate cuts.
    the only noteworthy point is that the cutting has / will cross the 0 bound.
    but essentially a continuation of the policy of making money cheap and making saving undesirable and consumption desirable.

    their goal is to get us to spend and not save.

    why? stimulate demand which is the heart of Keynesian economics.

    look around - demand is waning for all kinds of things, so their knee jerk answer is lower interest rates even if that means going negative. Must pry that cash out of the bank and in into the marketplace at all costs.

    IMHO, there is no point wailing or hand wringing over it, nothing any of us do or think will change whatever it is they are going to do.

    larger question is what a prepper is do to about it.

    IMHO, if they want me to spend I am going to.
    beans, bullets and band aids - and diesel and propane and tools etc etc.
    I don't think any of those things are going to get much cheaper than they are right now and might as well as exchange my fiat paper for tangible goods.

    This is a process that I have been doing since the light switch went on for me 6 years ago. That was when I got totally out of all the markets. All my stocks and bonds are now converted to land and preps.

    and i am keeping a small reserve of cash to use to purchase those things that are declining in price. Mostly prowling Craigslist & Ebay for those as well as attending farm auctions. Last week bought a pallet of landscaping fabric (4,000 LF of 24" wide) for $120. There were scores of diesel tractors going for under $5,000.

    Wednesday I go for final test drive of a 1986 diesel 31ft Class A RV that is for sale @ $3,000 which will make a fine backup BOV / storage room / additional housing at the retreat. Bargains like that will be more common as the economy circles the drain.

    and I am keeping an eye on mortgage re finance rates, if they hit 2.5% I will consider refinance even though I only have 10 years left on current one.

  10. #20
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    What I read that they did in Europe, normally a bank has to keep some cash on hand in a central (government) bank, for emergencies. With zero intrest rate for the banks, they can just take $$ and stash it in the central bank, to look good on the books. Negative interest rates, make these banks, that have excess of the minimum $$ in the central banks to have to pay interest on it rather than horde it. This would push (probably bad) loans out to the people (allegely), stimulating growth.

    I don't have a link, it was something I read, hopefully we have a professional economist on the board that can comment.
    Last edited by Winni; 02-15-2016 at 05:40 PM. Reason: Spelling

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