Ah, interesting stimulus package
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Replying to @cryptoalonzito @mileskimball and
As in "may you live in interesting times." :-(
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Replying to @NickSzabo4 @mileskimball and
I feel sick. If I'm comprehending this well enough, this whole thread deserves to be in all caps.
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Replying to @cryptoalonzito @mileskimball and
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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Replying to @NickSzabo4 @cryptoalonzito and
If I were in Europe I might well be worried though.
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Replying to @NickSzabo4 @cryptoalonzito and
Vake 😷 Retweeted Miles Kimball
Relax
@NickSzabo4! They're specifically engineering the negative interest rates so that they only affect the wealthy!https://twitter.com/mileskimball/status/1155471449626296325 …Vake 😷 added,
Miles Kimball @mileskimballReplying to @rvnflo @vakeraj and 2 othersA crucial part of our proposal is specifically designed to preserve the nominal value of non-elitist wealth. We recommend the central bank use the interest-on-reserves formula to incentivize banks to provide zero (NOT NEGATIVE) rates for small checking and savings accounts.1 reply 0 retweets 1 like -
Replying to @vakeraj @NickSzabo4 and
Negative interest rates benefit the rich more. Even if you exclude them. They own assets too. Do the price of those assets increase while rates go lower. The rich will get richer dumping their bags on you.
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Replying to @Hanakookie1 @vakeraj and
There are a lot of things in our system that favor the rich that have nothing to do with the level of interest rates. If negative interest rates shine a light on how the rich are favored in ways that preexisted the negative rates, that is a good thing.
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Replying to @mileskimball @Hanakookie1 and
Actually, there is a lot of experience showing that the spreads between the interest rates the poor get and the rates of return the rich get narrow when interest rates are low. Under our plan, negative rates give those of modest means a higher return than the rich.
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Replying to @mileskimball @Hanakookie1 and
Show me the data? Low rates causes massive amount inflow into assets like equity, housing...assets own by the rich. Poor people have their money and saving in the bank. The low interest rate environment is the cause of the widening income gap between rich and poor
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Correct. Also, corporations now often pay only 2-3% for dollars, short steps away from the central bank spigot generating that money from thin air. The poor have to pay 20% on their credit cards.
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