LMFAO!!! TRUMP demands 0% or NEGATIVE INTEREST RATES!!!

No, it means that the banks would have to pay back less money than the full amount they borrow from the fed.

It would cost you money to have savings...banks would charge interest instead of paying you...

Please explain why this is bad?

he’s not brilliant, that’s the thing

he bluffs, files bankruptcies, refuses to pay until they settle for less and screws people

if everyone did this “brilliant” strategy the system would collapse

now the stress of this job is bringing on senility

watch him go full retard more and more frequently, probably in time to lose in 2020

Exactly, the rest of the world is devalueing their currency, only the US is raising rates. I think the rest of the world is doing a massive carry trade. Borrowing their currency for pennies to buy US bonds and stocks then making money by doing nothing (arbitrage).

Are you that dense? Interest rates don't pertain in this context to your savings account. They pertain to how much interest you pay on a loan.

PAYING someone to borrow money is INSANE.

How much would you borrow if you were being PAID to borrow it?

I know how much i'd ask for - INFINITE.

Of course YOU don't get the negative interest rate - but the banks do.... and all they'll do is get paid to borrow, hoard the loan amount (ie it NEVER enters the economy so in the form of small business loans), and simply replay that risk free money and pocket the negative interest they're being paid as risk free profit. Why loan money at a risk when you can earn infinite amounts risk free?

It's a MASSIVE wealth transfer from the savers, pension funds and mutual funds (who are paying the neg rates on their savings) straight to the banks.

For example - in my EUR account, anything over 100k i now have to PAY 1% annually.

But most importantly it totally fucks up price discovery and pricing information - something that always will destroy a free market system.

Oh, and Krugman LOVES neg rates.

Buy gold.

Buy silver.

out.

The DJIA is going to be 30k by Christmas.

Nobody fucking listens to me...

-sigh-

Its not bad. Housing will skyrocket like crazy now. You will see prices you will never expect. Trillion dollar houses.

PAYING someone to borrow money is INSANE.

How much would you borrow if you were being PAID to borrow it?

I know how much i'd ask for - INFINITE.

Of course YOU don't get the negative interest rate - but the banks do.... and all they'll do is get paid to borrow, hoard the loan amount (ie it NEVER enters the economy so in the form of small business loans), and simply replay that risk free money and pocket the negative interest they're being paid as risk free profit. Why loan money at a risk when you can earn infinite amounts risk free?

It's a MASSIVE wealth transfer from the savers, pension funds and mutual funds (who are paying the neg rates on their savings) straight to the banks.

For example - in my EUR account, anything over 100k i now have to PAY 1% annually.

But most importantly it totally fucks up price discovery and pricing information - something that always will destroy a free market system.

Oh, and Krugman LOVES neg rates.

Buy gold.

Buy silver.

out.

It would cost you money to have savings...banks would charge interest instead of paying you...

I don't claim to be an economist but it seems to me that by reducing the intrest rates - is the same as getting rid of the Fed ... they won't be making any money and perhaps paying YOU for using their SERVICE

Wouldnt that mean higher taxes?

Please explain why this is bad?

So you love bankers and want them to steal your money?

Low interest rates stimulate growth. It's always been that way.
I find it incredible how many GLPers who on one hand hate bankers, blame them for wars and all the ills of the world, yet at the same time think that Trump is crazy for telling the Fed Reserve to drop it's rate to 0%

There seems to be a lot of schizoids here.

No, it means that the banks would have to pay back less money than the full amount they borrow from the fed.

Please explain why this is bad?

I don't want anything that will cause hyperinflation. That is bad for everyone.

Trillion dollar houses are a problem even if you outright own it because the fucking property taxes are based on the value.

There shouldn't interest at all. There should only be national banks that are run by the feds that give rent to own loans to all people so everyone can pay for their own homes instead of renting others.


Necessities: food, shelter, utilities, health care and dental.

These should be interest free.

The rest who cares, they're extra's.

Bankruptcy causes hyper inflation.
Reducing the national debt strengthens the currency preventing hyper inflation.
So if the lending rate is reduced to 0 how does that cause hyper inflation?

Bankruptcy causes hyper inflation.
Reducing the national debt strengthens the currency preventing hyper inflation.
So if the lending rate is reduced to 0 how does that cause hyper inflation?

It actually weakens the currency (which is good for manufacturing/exports) and increases inflation some. A little inflation is necessary. We're at or around 0 right now. That's why we can afford to do this.

Just about everything Trump says or Tweets regarding the Fed is designed to promote a weaker dollar. I know it sounds counterintuitive, but a weaker dollar is good for the economy the same way that a small inflation rate is good. Just not too weak.

Enjoy your hyper inflation.