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)
Reply Start New Thread
 
Old 09-11-2019, 09:47 AM
 
5,753 posts, read 3,744,935 times
Reputation: 5617

Advertisements

https://mobile.twitter.com/realDonal...w.yahoo.com%2F

Stupidity aside I’ve been curious how the US will react once negative rates do hit the US. It’s just a matter of time with the trend. I forget exactly where it is but a large portion of bonds in the rest of the world has hit negative rates. It’ll be a new phenomenon and certainly isn’t going to be a healthy one.

For starters:

Real estate prices continue going up

Banks will have to get creative at charging customers
Reply With Quote Quick reply to this message

 
Old 09-11-2019, 09:55 AM
 
920 posts, read 434,853 times
Reputation: 2869
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?
Reply With Quote Quick reply to this message
 
Old 09-11-2019, 10:02 AM
 
5,753 posts, read 3,744,935 times
Reputation: 5617
I don’t subscribe to the tin foil hat club.
Reply With Quote Quick reply to this message
 
Old 09-11-2019, 10:08 AM
 
920 posts, read 434,853 times
Reputation: 2869
Quote:
Originally Posted by LordSquidworth View Post
I don’t subscribe to the tin foil hat club.
The central banks don’t care what you’re “subscribed” to. In 2011 Congress essentially eliminated the debt ceiling in the U.S. Over in the EU for Germany bond yields are low or negative. Bank of Japan is the poster child for zero rates. China? — PBoC has floated more debt than the USA and their economy is only 2/3 the size of ours.

The writing is on the wall.
Reply With Quote Quick reply to this message
 
Old 09-11-2019, 12:57 PM
 
Location: The Berk in Denver, CO USA
14,247 posts, read 20,771,418 times
Reputation: 23424
1. Trump is a real estate developer. Real estate deals are built on debt. Zero interest rates would be great for real estate developers.
2. The hints of a coming recession have Trump scared. He is searching for anything to keep the recession at bay until November 5, 2020.
3. Trump is completely clueless about economics as he has not read a book since 5th grade. Watching Larry Kudlow on TV does make you an economist.
4. Trump wants to prove that he can push Jerome Powell around.
Reply With Quote Quick reply to this message
 
Old 09-11-2019, 04:16 PM
 
328 posts, read 154,632 times
Reputation: 758
US consumers will be able to buy more crap and continue to keep the fake economy alive.
Reply With Quote Quick reply to this message
 
Old 09-11-2019, 04:44 PM
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
4,459 posts, read 2,059,752 times
Reputation: 3439
USA fiscal year ends October 31, IIRC.
Congress and DJT will need to find a workable solution in the shortterm. I would be looking at higher debt. i have no idea how conservatives can reconcile the debt burden other than the debt will fall mostly on the middle class and lower economic classes. I don't expect a good outcome since no-jaw, majority Senate leader McConnell, will reject anything that comes from the Democratic heavy House, even if a good portion of House Republicans are for a rational budget.
Reply With Quote Quick reply to this message
 
Old 09-11-2019, 04:49 PM
 
Location: Guadalajara, MX
6,224 posts, read 3,046,287 times
Reputation: 11997
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?
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.
Reply With Quote Quick reply to this message
 
Old 09-11-2019, 04:56 PM
 
12,220 posts, read 21,882,153 times
Reputation: 12106
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.

Attached Thumbnails
Moronic level keeps going lower - US president calls for zero/negative rates-91d24033-0740-48e3-aff4-0f377aaf3831.jpeg  
Reply With Quote Quick reply to this message
 
Old 09-11-2019, 05:47 PM
 
2,832 posts, read 1,840,977 times
Reputation: 6311
Central banks pretend to loan real money while countries pretend they’ll pay it back.

It’s the serpent eating it’s own tail. The world war 2 victory powers and victory zones set up by the U.S just need to maintain control of the presses.

“Control food, and you control the people. Control oil and you can control continents. Control money, and you control the world”.
Reply With Quote 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.


Reply

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