U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old Yesterday, 06:01 PM
 
Location: Phoenix, AZ
11 posts, read 6,811 times
Reputation: 26

Advertisements

Quote:
Originally Posted by wheelsup View Post
A serious consequence of these rates and unlinking the dollar is inflation. It's why a "normal" house these days costs $250k-$300k is most metro areas. It's why daycare costs $2,000/month. It's why a new Corolla is $20,000.

It really hurts the poor and middle class as they have little room to bargain for higher wages. It primarily helps the upper and wealthy classes as their investments were bought at much lower prices and allows for the payoff of debt at inflated incomes and they typically own businesses that can raise prices and give themselves a pay raise.

Big coincidence that inflation has skyrocketed since we came off the gold standard in the early 70’s, huh? The Fed can endlessly print and print money... fiat currency isn’t worth jack.
Quick reply to this message

 
Old Yesterday, 06:20 PM
 
2,704 posts, read 718,216 times
Reputation: 4750
Quote:
Originally Posted by TimAZ View Post
You don’t get it, do you? The central banks are all-in for Modern Monetary Theory. MMT advocates unlimited debt to finance anything. And what is the best interest rate for nations signed up for unlimited debt? Yes, that would be zero or even negative.

Now do you get it?
No mainstream economist is in favor of MMT, at least in part because MMT has never been articulated in a coherent set of mathematical expressions and models that can be tested using techniques of modern econometrics.

There is no way to know what a model of MMT supports or doesn't support because there are no coherent mathematical models. There are plenty of words in tweets and blog posts which are vague and sometimes self-contradictory.

That's not economic science. That campaign sloganeering. There is a difference.

Even progressive left-wing economist Paul Krugman said MMT supporters:

Quote:
“tend to be unclear about what exactly their differences with conventional views are, and also have a strong habit of dismissing out of hand any attempt to make sense of what they’re saying."
Quick reply to this message
 
Old Yesterday, 06:27 PM
 
895 posts, read 422,734 times
Reputation: 2793
Quote:
Originally Posted by lieqiang View Post
US Central Bank has raised interest rates nine times over three years. This does not seem compatible with a primary directive of zero or negative interest rates.
Economists use effective interest rate models that account for inflation and money supply growth in a given economy. For the U.S. economy the fed funds rate in a 2%-3% range is essentially a zero effective rate.
Quick reply to this message
 
Old Yesterday, 06:27 PM
 
Location: Wartrace,TN
5,690 posts, read 9,068,118 times
Reputation: 11311
What incentive is there for capital to lend at a negative rate? Why would capital PAY to invest? Makes more sense to keep money in a safe.
Quick reply to this message
 
Old Yesterday, 06:49 PM
 
895 posts, read 422,734 times
Reputation: 2793
Quote:
Originally Posted by Wartrace View Post
What incentive is there for capital to lend at a negative rate? Why would capital PAY to invest? Makes more sense to keep money in a safe.
1) Transaction fees — the more the merrier. 2) Safety - the knowledge that the bond can be sold or redeemed.
Quick reply to this message
 
Old Yesterday, 08:02 PM
 
Location: Southern Most New Jersey
1,214 posts, read 865,314 times
Reputation: 2021
If you look back in history just about all presidents wanted lower interest rates.
Quick reply to this message
 
Old Yesterday, 08:12 PM
 
244 posts, read 53,117 times
Reputation: 320
Sheesh...my elderly mom on leased land...lease expires next year. May finally be able to get a loan (or reverse mortgage) and keep her in her place without moving which would be great!
Quick reply to this message
 
Old Yesterday, 09:13 PM
 
12,190 posts, read 21,848,812 times
Reputation: 12082
Quote:
Originally Posted by Wartrace View Post
What incentive is there for capital to lend at a negative rate? Why would capital PAY to invest? Makes more sense to keep money in a safe.
That's the point of it...the government wants to essentially coherence corporations into investing the money instead, since they're gonna lose money on it just sitting there.

Instead of enacting pro growth policies, which would fix the problem but oh no we can't cut taxes and give people more of their money to spend.
Quick reply to this message
 
Old Today, 01:41 AM
 
18,011 posts, read 4,286,045 times
Reputation: 5770
I wish rates would go up to give us more wiggle room and ammo to deal with the next recession.ugh.
Quick reply to this message
 
Old Today, 05:24 AM
 
Location: On the road
6,215 posts, read 3,033,444 times
Reputation: 11984
Quote:
Originally Posted by DieselTrucking85 View Post
Big coincidence that inflation has skyrocketed since we came off the gold standard in the early 70’s, huh? The Fed can endlessly print and print money... fiat currency isn’t worth jack.
Dude what on earth are you talking about? You're finding patterns in noise to chase your conclusion.



Inflation rate was much more volatile while on gold standard, including periods of inflation much higher than than after US came off the gold standard. The past 35 years have been the longest period of low, stable inflation in history.
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 

Quick Reply
Message:
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top