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 Yesterday, 07:10 AM
 
12,825 posts, read 10,161,663 times
Reputation: 9653

Advertisements

AFAIK, there is absolutely zero evidence that zero or negative rates are better for an economy (in the medium to long term) than moderate rates (2-3% fed funds, 5-6% prime rate).
Reply With Quote Quick reply to this message

 
Old Yesterday, 07:19 AM
 
10,027 posts, read 10,324,389 times
Reputation: 5361


Quote:
Originally Posted by RationalExpectations View Post
Gold bars are pretty easy to obtain and are quite liquid.
Gold is $150,550 per 100 oz bar. Certainly some people will put money into gold if they are concerned about negative interest rates.

Currency bricks are standardized at 4000 banknotes that are shrink wrapped and labeled. That way they don't have to be counted. They weigh 4 kg and if you are using $100 banknotes they are worth $400,000 (roughly twice the value of 4 kg of gold)


Currency straps standardize counts of 100 banknotes


Quote:
Originally Posted by Peregrine View Post
Agree. I don't get the connection at all?!?!
But consider a person who has $3,000 in a bank account, and is concerned that he is getting no interest and bank fees will begin to chip away at his account. The easiest thing that he can do is to turn it into 30 $100 banknotes and put it in a safe hidden somewhere in his home.

Quote:
Japanese hoarding $300B under mattresses
The simplest and most obvious way to lure out the cash would be to raise interest rates, which are hovering at record lows, but that has its own pitfalls.“The government wouldn’t be able to afford to service its debt anymore,” said Kumano.
The currency system was not designed to handle large scale hoarding. It's being used that way by foreigners who feel that US currency is the best way of storing value. But if even 10% of Americans begin hoarding $100 banknotes, the Bureau of Engraving and Printing will have trouble producing that many banknotes.

The number of $100 banknotes in circulation is roughly 40 times the population, but up to 75% of those bills circulate in foreign countries.

Last edited by PacoMartin; Yesterday at 07:31 AM..
Reply With Quote Quick reply to this message
 
Old Yesterday, 07:40 AM
 
Location: East Coast of the United States
17,642 posts, read 19,878,707 times
Reputation: 13568
Lower interest rates means the stock market goes higher.

Everybody is invested in the stock market, right?
Reply With Quote Quick reply to this message
 
Old Yesterday, 07:46 AM
 
Location: Washington Park, Denver
7,089 posts, read 6,734,184 times
Reputation: 7682
This would significantly reduce the ability of the fed to do anything when the next recession comes. It’s like burning all of our gas by flooring it on a downhill.
Reply With Quote Quick reply to this message
 
Old Yesterday, 07:52 AM
 
640 posts, read 1,014,309 times
Reputation: 1041
Billionaires favor high interest rates because it gives them an easy income from their investments. People in debt favor low interest rates because it means their debt doesn't increase as much over time. I'll let you make your own decision about Trump's financial state.
Reply With Quote Quick reply to this message
 
Old Yesterday, 08:17 AM
 
2,716 posts, read 721,150 times
Reputation: 4770
Quote:
Originally Posted by PacoMartin View Post
I think that it is true that the FED is not going to pay attention to his tweets, but a big percentage of ordinary men do pay attention. A bank run on $100 bills is not going to be done by executives, but by blue collar workers.

I read that the average ATM withdrawal in the USA is roughly $100 in $20 bills, but the average teller withdrawal is about $700.

The last completed series of color $100 bills was divided up to the Federal Reserve Banks. Numbers are in skids where a skid is about 1400 lbs of banknotes numbering 640,000 notes.

3,435 New York City
1,755 Atlanta
1,465 San Francisco
980 Dallas
805 Richmond
720 Chicago
625 Cleveland
445 St. Louis
360 Boston
300 Kansas City, MO
260 Philadelphia
205 Minneapolis

Commercial banks in central USA don't have the need for large numbers of $100 banknotes.
The distribution of $20 bills (in skids) is different.
990 New York City
970 Richmond
920 San Francisco
720 Atlanta
650 Chicago
540 Philadelphia
510 Cleveland
400 Dallas
290 Boston
280 Kansas City, MO
240 St. Louis
80 Minneapolis

Here in Las Vegas, everyone keeps $100 bills in their wallet.

Last edited by RationalExpectations; Yesterday at 08:42 AM..
Reply With Quote Quick reply to this message
 
Old Yesterday, 08:27 AM
 
2,716 posts, read 721,150 times
Reputation: 4770
Quote:
Originally Posted by PacoMartin View Post
Gold is $150,550 per 100 oz bar. Certainly some people will put money into gold if they are concerned about negative interest rates.
I was referring to 100 gram or 1000 gram gold bars, not 100 ounce bars. The 100 gram and 1000 gram gold bar is more affordable, more easily stored, and more easily converted back into cash than large 100 oz bars.


https://f5b8ui-0497s6r6rnkm.cloudmae...YvEk42nIVb.jpg

https://canadianpmx.com/wp-content/u...99991000_c.jpg

Last edited by RationalExpectations; Yesterday at 08:48 AM..
Reply With Quote Quick reply to this message
 
Old Yesterday, 08:36 AM
 
Location: Tennessee
24,353 posts, read 18,138,230 times
Reputation: 28612
Quote:
Originally Posted by SkyDog77 View Post
This would significantly reduce the ability of the fed to do anything when the next recession comes. Itís like burning all of our gas by flooring it on a downhill.
Absolutely. There are very few tools left in the toolkit. When the next recession comes, the Fed has little room in the way of monetary policy and Congress has little room in the way of fiscal policy to assist, with respect to where interest rates and deficits currently are, respectively.
Reply With Quote Quick reply to this message
 
Old Yesterday, 08:49 AM
 
Location: Washington Park, Denver
7,089 posts, read 6,734,184 times
Reputation: 7682
Quote:
Originally Posted by Transmition View Post
Billionaires favor high interest rates because it gives them an easy income from their investments. People in debt favor low interest rates because it means their debt doesn't increase as much over time. I'll let you make your own decision about Trump's financial state.
Firms favor low interest rates because they allows for access to cheaper capital. Billionaires own firms and like using debt when it’s cheap.
Reply With Quote Quick reply to this message
 
Old Yesterday, 08:58 AM
 
Location: Seattle
1,570 posts, read 332,614 times
Reputation: 1507
If Trump succeeds in sustaining the economy to get re-elected, then we go into a deep recession or depression, I'd expect that by 2022 he'll be impeachable because his popularity will be in the single digits.
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