tag:blogger.com,1999:blog-6399730406480392183.post2021390166595456907..comments2024-03-27T11:18:34.222-03:00Comments on Viable Opposition: Negative Interest Rates - The Swiss ConundrumA Political Junkiehttp://www.blogger.com/profile/03342345936277964422noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6399730406480392183.post-85009654405102193682014-03-26T20:18:49.609-03:002014-03-26T20:18:49.609-03:00Sorry - not every 50 years .. to halve the valuee...Sorry - not every 50 years .. to halve the valuee of the currency every 28 years. What a sophisticated strategy. But my late Granny wouldn't agree, and if she'd think a financial plan is nuts it probably is. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-31886110627717057802014-03-26T20:10:07.055-03:002014-03-26T20:10:07.055-03:00Another excellent blog. Thank you. To fix on defla...Another excellent blog. Thank you. To fix on deflation - why is that so bad? Bad for debtors,but why not? I'm a saver and fed up with govts protecting debtors (themselves primarily) at my expense. The old paradigm was 'want>save>buy'. Credit was for production. Consumption credit was minimal. It's a powerful drug. Many can't resist it. That awful VISA ad "Take the Waiting Out of Wanting" said it all. It initially stimulates activity, but that wears off. The new norm is 'want>borrow>buy>repay'- a huge cultural shift within 2 generations. It didn't have to happen, or just happen. It was DRIVEN by our banks which became like ice labs manufacturing credit by the ton, from ingredients that were either cheap or free. They made most of it from nothing - "The Credit Theory of Money" etc. Immensely profitable, and made them immensely rich, and ....immense. Inevitable intermediaries in almost all transactions. Their best clients, that they specially pursue are the most addicted. It is revolting. Bigger than govts, too big to fail, bail, gaol. At one stage in the US pocketing on third of all profits generated - justifying Soros' description of them as parasites. To the point that the gutless US Attorney General tells Congress he can't pursue the criminally fraudulent as it might 'damage the economy'. They've created a drug-addicted consumer and a drug addicted economy. It is awful and the basic reason we are where we are. Capitalism wasn't built on this and doesn't need it. Benrnanke's solution ..... more drug from his lab. He wants to reproduce 2006! <br /><br />Withdrawal is painful and these days no cure must cause pain even if we think it won't work. My dentist (1) apologises for the bitter taste of (2) the anesthetic rub on my gum prior to (3) the anesthetic needle! Pathetic. (Obviously like you) I can't take Dr Bernanke's treatment plan seriously. We need rehab. It'll hurt. Deflation? Too bad. Like the Fed's easy money (and feckless regulation) basically caused 2008, deflation may be part of the cure. I don't want them "aiming for 2% inflation"! A plan to devalue the currency by half every 50 years? Let defaulters default like a man, not by the slimy expedient of inflation. Mellon was right those years ago ... "purge the rottenness from the system". Not with dynamite, with a modern smooth savvy laxative. But purge it. <br />The current plan is a pain-avoidance plan not a cure plan.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-41813382357803156372014-03-26T19:10:41.169-03:002014-03-26T19:10:41.169-03:00Exactly.Exactly.A Political Junkiehttps://www.blogger.com/profile/03342345936277964422noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-88440193142612071172014-03-26T13:56:20.762-03:002014-03-26T13:56:20.762-03:00This problem is very strange indeed. There is too ...This problem is very strange indeed. There is too much money is what it comes down to. Too much money concentrated with in hands of too few entities. The money isn't flowing anywhere and it’s just pooling and growing larger. I guess this is the ultimate result of central banking and make believe money that isn't backed by anything tangible.Anonymousnoreply@blogger.com