Negative Interest Rates Will They Work

[GreatGoodRon]

The Author is Comparable to Laurence Kotlioff and Marc Faber.

Negative Interest Rates Will They Work

http://morganisteconomics.blogspot.c...they-work.html

[GreatGoodRon]

The author is correct because USA administration does not have to pay any interest for $100 Trillion or more debts/loans.

By the credit card industry standards USA adminstration has to pay 30% or $30 Trillion interest every year. So USA economy is suffering losses of $30 Trillion every year since they are not charged any interest for $100 Trillion debts.

[WilliamC]

Magic eight ball says...

[enter`name`here]

interest rates may be at an all time low, but that is not the only thing people base a decision to borrow more money on. The recession has dramitcally effected peoples expectations of future income. The fed expects people to borrow more money to increase spending and beleives this will spur a recovery. It seems to me however that people will not borrow money untill they feel their future income is more certain, its a catch-22 situation.

We should also consider that time preferences across the economy may have been permanently effected by the recent downturn, people suddenly see more value in having savings to fall back on.

[Black Flag]

Any artificial manipulation of interest rates always leads to market distortions and massive market perversion, which must cause massive suffering on most people

[The Gold Standard]

http://mises.org/daily/3432/The-Nutt...Interest-Rates