Central banks going full Zimbabwe! "The central message of this paper is that there are set of readily available approaches to enable DEEP NEGATIVE RATES that empowers the central bank"https://www.imf.org/en/Publications/WP/Issues/2019/04/29/Enabling-Deep-Negative-Rates-A-Guide-46598 …
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Damn. Heard about that but thought it was wildly out of bounds. Thanks for the reply.
Despite this being an IMF paper, for the next few years at least "wildly out of bounds" is still probably more accurate in most places than "readily available measures". They have a whole spiel about how they need to introduce it slowly for it to become politically palatable.
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Imagine the exodus from savings accounts then
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Their theory is that people will thereby be incentivized to spend the money as the alternative to having it stolen. Same as the Keynesian argument for inflation, only a more direct theft. They don't even mention gold, cryptocurrency, real estate, art, etc. as alternatives.
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Ah, interesting stimulus package
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As in "may you live in interesting times." :-(
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I feel sick. If I'm comprehending this well enough, this whole thread deserves to be in all caps.
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Despite their idiotic rhetoric making the unprecedented sound routine, there are many hurdles, especially here in the U.S., where they will face a flurry of lawsuits to be heard by judges who studied contract and property law, not macroeconomic superstitions, in law school.
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If I were in Europe I might well be worried though.
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They borrow money they can’t repay and eventually let people stuff their accounts with what really is the original lenders money…and then they give it back to lenders through NIRP. Clever.
Thanks. Twitter will use this to make your timeline better. UndoUndo
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