Wednesday March 16, 2016 - 17:09:35 GMT
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Numbnuts' Theory of Negative Rates
There is a growing feeling that negative interest rates are like pushing on a string and are in fact counterproductive to the goals of stimulating the economy and increasing inflation, Some may argues that negative interest rates are a tax on savers and
The following is a post from a highly valued member of the Global-View Forex Forum
The idea of pushing more cash into the system through QE and then taxing wealth (and the system) with negative interest rates seems counter-productive to me.
How a wealth tax can be spun as stimulative when it is actually a policy designed to target equity prices confounds. It will actually encourage (especially the demographically vulnerable) more saving, less discretionary spending and lengthen working careers which will all depress prices, wages and returns.
It’s the "ice age of free market capitalism".
Jay Meisler, co-founder
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