When will Central Bankers realize....

[Zander]

When will Central Bankers realize that monetary policy is ineffective as a tool to promote growth? When will they realize that "negative interest rates" are an act of desperation?

When will these criminally ignorant shysters realize that Central Bank and Government meddling cannot lesson the pain of an economic downturn; it can only turn a painful but relatively brief recession into an agonizingly long depression?

The entire world is awash in central bank issued IOU's, papered over with more central bank issued IOU's....So when will Central Bankers realize they were wrong??? When it is too late.....

 

[Toro]

Monetary policy is effective to a point.

But I do think that negative interest rates are destructive.

If negative rates continue indefinitely, they could destroy the financial system. They will certainly destroy pensions and other savings institutions that have promised a fixed rate of return.

People will save more because they can't compound their savings like they could in the past.

Ironically, central bankers are contributing to slow growth because of what Keynes called The Paradox of Thrift.

Paradox of thrift - Wikipedia, the free encyclopedia

 

[william the wie]

Slight dis agreement. Central Banks are useful for financing necessary wars like the Dutch war of imdependence that led to the inviention of central banking otherwise I agree.

 

[MarathonMike]

The question is what are you doing to prepare for the inevitable crash? Do you cash out of the market and take part of that money and short the market?

 

[Dekster]

The question is what are you doing to prepare for the inevitable crash? Do you cash out of the market and take part of that money and short the market?

Buy seeds and salt.

 

[phoenyx]

When will Central Bankers realize that monetary policy is ineffective as a tool to promote growth? When will they realize that "negative interest rates" are an act of desperation?

When will these criminally ignorant shysters realize that Central Bank and Government meddling cannot lesson the pain of an economic downturn; it can only turn a painful but relatively brief recession into an agonizingly long depression?

The entire world is awash in central bank issued IOU's, papered over with more central bank issued IOU's....So when will Central Bankers realize they were wrong??? When it is too late.....

Would you agree that the solution is to abolish the current monetary system and replace it with cryptocurrencies like bitcoin?

 

[AnCap'n_Murica]

When will Central Bankers realize that monetary policy is ineffective as a tool to promote growth? When will they realize that "negative interest rates" are an act of desperation?

When will these criminally ignorant shysters realize that Central Bank and Government meddling cannot lesson the pain of an economic downturn; it can only turn a painful but relatively brief recession into an agonizingly long depression?

The entire world is awash in central bank issued IOU's, papered over with more central bank issued IOU's....So when will Central Bankers realize they were wrong??? When it is too late.....

 

[AnCap'n_Murica]

When will Central Bankers realize that monetary policy is ineffective as a tool to promote growth? When will they realize that "negative interest rates" are an act of desperation?

When will these criminally ignorant shysters realize that Central Bank and Government meddling cannot lesson the pain of an economic downturn; it can only turn a painful but relatively brief recession into an agonizingly long depression?

The entire world is awash in central bank issued IOU's, papered over with more central bank issued IOU's....So when will Central Bankers realize they were wrong??? When it is too late.....

Would you agree that the solution is to abolish the current monetary system and replace it with cryptocurrencies like bitcoin?

Cryptocurrency could compete with specie and private credit swaps.

Fiat money is vastly overrated.

 

[phoenyx]

When will Central Bankers realize that monetary policy is ineffective as a tool to promote growth? When will they realize that "negative interest rates" are an act of desperation?

When will these criminally ignorant shysters realize that Central Bank and Government meddling cannot lesson the pain of an economic downturn; it can only turn a painful but relatively brief recession into an agonizingly long depression?

The entire world is awash in central bank issued IOU's, papered over with more central bank issued IOU's....So when will Central Bankers realize they were wrong??? When it is too late.....

Would you agree that the solution is to abolish the current monetary system and replace it with cryptocurrencies like bitcoin?

Cryptocurrency could compete with specie and private credit swaps.

Fiat money is vastly overrated.

Fiat currency created primarily by the rich, for the rich, should be abolished. Creating cryptocurrency money requires it be mined, just like gold. In other words, it's a limited resource, requiring effort to extract, unlike fiat currencies, which can be created out of thin air and have runaway printings, as has happened in many countries where currencies become around as worthless as used newspapers. There's a reason the price of gold and the price of bitcoins continues to rise while the price of fiat currencies continues to sink. There's plenty of historical precedent for the failure of fiat currencies:
Fiat Currency: A History of Failure

 

[Al Azar]

People will save more because they can't compound their savings like they could in the past.

Or, people will spend rather than save because they're losing purchasing power to inflation.

The spending increase spurs production which increases hiring that puts upward pressure on wages and inflation, which is managed by increasing interest rates. It's self-correcting because in a negative interest rate environment consumer spending makes more sense than saving.

The rub is getting people to spend when their wages are stagnating. Big Business is sitting on many billions of dollars in cash and could end these negative rates by raising wages and profiting from the increased demand for goods and services.