Tucker Goes Full Retard - Bernanke will lose his mind at this option...

[d_diggler]

Bank of England deputy governor Paul Tucker has said negative interest rates should be considered.

BBC News - Negative interest rates idea floated by Bank's Paul Tucker

A negative interest rate would mean the central bank charges banks to hold their money and could encourage them to lend out more of their funds.

Negative rates would have a detrimental impact on savers, who have already seen the income from their savings fall since the financial crisis.

Is not the investment of capital for return, also known as 'savings', the exact definition of capitalism, and is not this investment of capital that which is used to drive an economy and is not the printing of money and forcing of its lending, making saving money pointless the antithesis of said meaning.

Hurrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrxactly.

 

[dsm56]

It's just insane that everyone is either too much of a retard or in denial to admit that the reason SMEs aren't getting loans is the the banks are bankrupt, the central banks are bankrupt, and "people" are bankrupt.

Either you have a new monetary system, or it will take 20-30 years for things to get back to normal and for US to pay for the previous generation's binge. Oh and at the same time we personally shouldn't save because it's not worth it at 0.0001% interest and 10% inflation, but we should also pay pensions for older people since they couldn't be arsed to save when inflation was 3% and interest was 10%.

/vent

 

[zimok]

How likely is it that everything will be just fine for the next 50 years?

That we'll all keep using our fake money, everything will keep working some way or another, people who work will be able to feed themselves etc..

What actually has to happen for everything to fuck up?

What has to happen for everything to keep working?

 

[d_diggler]

How likely is it that everything will be just fine for the next 50 years?

That we'll all keep using our fake money, everything will keep working some way or another, people who work will be able to feed themselves etc..

The problem with taking the everything is just fine, carry on approach is that the definition of 'just fine' is ambiguous.

Not having a financial meltdown, civil war, totalitarianism etc... would fall under the 'just fine' banner, but that doesn't mean your and everyone elses lives aren't worse off by a larger degree than they need to be.

The opportunity cost of a fucked system is more than simply the possibility of descending into chaos.

 

[lukep]

I wish we could force politicians to study austrian economics. This shit is just painful to read.

How likely is it that everything will be just fine for the next 50 years?

That we'll all keep using our fake money, everything will keep working some way or another, people who work will be able to feed themselves etc..

It's fully, 100% impossible.

In fact I'd say that only 10 Years is still 100% impossible. Many would agree:

[ame=http://www.youtube.com/watch?v=bYkl3XlEneA]There Will Be No Economic Recovery. Prepare Yourself Accordingly. - YouTube[/ame]

What actually has to happen for everything to fuck up?

That's a great question. The problem is we don't really know exactly what's going on in many ways, such as where the gold is and what the agreements are at the highest levels that keep our banking system the way it is.

From the outside, all I can deduce is that it would take a foreign country like China to demand a payment of the US that it can't pay... Such as in Gold. (China doesn't want the US to print anymore, for obvious reasons, and the US has been making gold payments to china for many years.)

So at some point china will simply say, "now pay us $1 trillion in gold for so and so", and the US will make excuses and stall like usual, and China will get upset & say "now, or else." -And we can only speculate what the or else will be.

A more likely scenario will be simple hyperinflation due to all the QE, going in overdrive once the bond market starts correcting as it is long overdue to.

A third, and also kind of likely thing to happen is that another currency outside all of these failed state currencies, perhaps the NZD, HKD, the Chilean Peso, or perhaps even Bitcoin, gains enough popularity to shed light on the utter fruitlessness of the USD, Yen, and Euro.... These three losers each look relatively stable because all three and even the Yuan too to some extent are in freefall together right now.

What has to happen for everything to keep working?

Bitcoin could save us if somehow everyone decided to jump in on it.... Lololol at that happening though... Even if hyperinflation scared them to do so.

Otherwise, I don't think anything could. It's hopeless bro.

 

[jryan21]

They can probably hold off collapse for a while longer, as long as oil is bought and sold in USD.

[ame=http://www.youtube.com/watch?v=2DCwafIntj0]Robert Newman's History of Oil - YouTube[/ame]