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Will Negative Interest Rates Work?

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.MASSHOLE.
Posts: 7408 - Karma: 11,040
FRANKFURT — The European Central Bank cut its benchmark interest rate to a record low on Thursday and, in an unprecedented attempt to stimulate the euro zone economy, said it would begin charging interest on deposits held by the bank.


http://www.nytimes.com/2014/06/06/business/international/european-central-bank-cuts-interest-rate.html?smid=fb-share

Interesting move by the ECB. NS Europeans, thoughts?
Jun 5 2014 10:00AM
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freestyler540
Posts: 13046 - Karma: 18,293
the EU is filled with dildos.


That is all
Jun 5 2014 10:01AM
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Iraq_Lobster
Posts: 1866 - Karma: 4,904
they're european, they will fuck up eventually
Jun 5 2014 10:17AM
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theabortionator
Posts: 51263 - Karma: 157,459
The central bank system fucks up economies. Nothing they do will work.
Jun 5 2014 10:19AM
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.MASSHOLE.
Posts: 7408 - Karma: 11,040
theabortionatorThe central bank system fucks up economies. Nothing they do will work.


Agreed, but since it is unlikely to change anytime soon, I am interested to see how the Europeans of NS feel about the negative interest rates. It likely means a higher fee system accompanied by a lower interest rate on their deposits.
Jun 5 2014 10:35AM
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volvotom
Posts: 2045 - Karma: 712
I think the intention is that it benefits spending versus savings. I am no economist, but I am unsure as to the efficacy this will have.
Jun 10 2014 9:24PM
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acualywasdolan
Posts: 1172 - Karma: -747
I personally feel a mass genocide is in order.
Central bankers, government regulators, dea agents and people who support the drug war.
Just kill them, sell their meat to animal farms.
That will improve the iq profile of those who are still living. Killing stupid people, those left behind will be smarter. Its simple.
Jun 10 2014 9:43PM
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Mr.Bishop
Posts: 22671 - Karma: 75,830
The main question is if the entire world is about to hit a massive correction or not.

As well, I'm curious to see if Keynesian economic theory pans out to be correct.
Jun 10 2014 9:47PM
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acualywasdolan
Posts: 1172 - Karma: -747
Mr.BishopThe main question is if the entire world is about to hit a massive correction or not.

As well, I'm curious to see if Keynesian economic theory pans out to be correct.


Keynesianism works if you actually save during the good times. Doesnt work if you spend and then spend more
Jun 10 2014 9:51PM
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theabortionator
Posts: 51263 - Karma: 157,459
SpssKeynesianism works



LOL
Jun 11 2014 12:52PM
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.MASSHOLE.
Posts: 7408 - Karma: 11,040
SpssKeynesianism works if you actually save during the good times. Doesnt work if you spend and then spend more


lol. Please.

Boom and bust cycles do not work.
Jun 11 2014 2:39PM
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.MASSHOLE.
Posts: 7408 - Karma: 11,040
The referenced post has been removed.


Where, in the past decade, has Keynesian economics worked? There have been NUMEROUS boom and bust cycles which have wreaked havoc across economies.
Jun 11 2014 2:52PM
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acualywasdolan
Posts: 1172 - Karma: -747
theabortionatorLOL


.MASSHOLE.lol. Please.

Boom and bust cycles do not work.


Keynesianism is kind of like communism. I should have said, works in theory. I am not a fan of it though. I mainly wanted to point out that true keynesianism would necessitate saving during the good times, which countries generally dont do.
Jun 11 2014 6:09PM
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CassiusClay
Posts: 1757 - Karma: 2
Yes, they will work like a bandaid on a cut that needs stitches. For the time being (10 years) they'll be fine. The flaw with the eu is how open they've been. They should have set more stringent financial requirements and follower them.
Jun 12 2014 12:41AM
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