Monday , 21 September 2020


Tag Archives: negative interest rates

Ben Bernanke On the Pros & Cons of Negative Interest Rates (+7K Views)

We can't rule out the possibility that, at some point in the next few years, our economy will slow, perhaps significantly. How would the Federal Reserve respond? What tools remain in the monetary toolbox? In this and a subsequent post, I discuss some policy options the Fed might consider, focusing first on negative interest rates.

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“Helicopter” Money & Negative Interest Rates Are On the Horizon

As the ripple effect of the COVID-19 pandemic rages on, central banks have been quick to act in slashing interest rates. However, with rates already sitting at historic lows before the crisis, it is possible that banks may be forced to employ more unconventional and controversial techniques to try and calm the economy as time goes on.

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Negative Interest Rates Will Likely Hurt, Not Help, Economic & Financial Stability – Here’s Why (+2K Views)

There’s a view in some policy circles that easy monetary policy is goodInterest-Rates for an economy, and the more stimulus you add, the better...This latest stimulus is taking the form of negative interest rates, or charging banks to park their cash with the expectation that this will spur lending and economic growth...In my opinion, however, negative rates—or high rental costs for money storage—are excessive and more likely to hurt, rather than help, economic and financial stability. Here are a few reasons why:

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The Reality on Main Street Is As Clear As the Nose On Your Face!

The only reason that I can come up with that would have the Fed raise rates is that it wants to crash the markets. Why? Because Main Street is not doing well as the Price to Sales ratio chart below clearly shows. The Fed, and the markets, are stuck and those who are fully invested now will probably get creamed if a negative catalyst like Donald Trump becoming President happens, as he would surly cause instability and rock the government institutions.

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LOOK! Financial System Collapsing Right Before Our Eyes

The most common question I hear is "when". When does the system collapse? When will we experience a re-set? I think this is a very odd question because if you stand back far enough you should be able to see that you are, in actuality, watching it! We are all so close and watching day by day movements, we are missing the big picture. The collapse is happening right before your eyes. "When" is a process and you are watching history!

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