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  • nigelmarkdiasnigelmarkdias Posts: 1,323 Silver ✭✭✭✭
    edited September 2016
    Also written by Rogoff
    This Time Is Different: Eight Centuries of Financial Folly (Princeton) @GoldMatters
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    "Negative interest rates will power us out of this resession." WTF?

    From http://press.princeton.edu/titles/10798.html
    Kenneth S. Rogoff, the Thomas D. Cabot Professor of Public Policy at Harvard University and former chief economist of the International Monetary Fund, is the coauthor of the New York Times bestseller This Time Is Different: Eight Centuries of Financial Folly (Princeton). He appears frequently in the national media and writes a monthly newspaper column that is syndicated in more than fifty countries. He lives in Cambridge, Massachusetts.

    To paraphrase Indiana Jones "Economists. I hate these guys."

    In Gold We Trust
  • RocketDogRocketDog Posts: 713 Silver ✭✭✭✭
    "If a central bank decides to lower rates to -5%, at some point investors are just going to take cash, rather than get a negative return in a checking account. This scenario would be counterproductive to a central bank’s efforts to fight a recession and deflationary pressures."

    Oh, is that what the central bank was trying to do? I thought they were just date raping us and then running off with our wallet. Well at least they bought us dinner first. What? I bought them dinner? And I paid for the Rufies? Wow, I'm a chump.

    "Investors are just going to take cash" rather than just take that negative return like a decent citizen. WHAT??? Banks are corporate enterprises and we don't have to do business with them if the price isn't right!!! If we don't agree to the terms we can take our business elsewhere, can't we? No? We used to be able to ... maybe... only thought we were free...
  • RocketDogRocketDog Posts: 713 Silver ✭✭✭✭
    One other thing, I'd prefer a world with 0.5% inflation and 8% interest rates. Why wasn't that listed as an option?
    I mean, it is actually possible, even conceivable, I am sure it happened once upon a gold standard.
  • sh4r3zsh4r3z Posts: 13 Tin ✭
    It's just a signal how distorded current markets are and negative interest rates are just the beginning. What about for instance the creation of the new upcomming SDR becomming the global currency of the elites? China will enter next month and their debt is even higher then from the US or EU. For a idea what's happening in China, check here. When i.e. the global housingbubble pops global poverty will be spread evenly all over the globe as Greece does for the EU now, only Greece is rich compaired to a lot of IMF members.
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