Negative Interest Rates and Death

bloomberg.com/news/articles/2016-06-09/gross-says-negative-rates-are-like-supernova-that-will-explode

realmoney.thestreet.com/articles/06/09/2016/european-banks-must-fight-negative-interest-rates-or-die

dailyreckoning.com.au/why-negative-interest-rates-are-a-retardation-of-the-essence-of-capitalism/2016/06/10/

reuters.com/article/globalmarkets-blackrock-interest-rates-idUSFUNDS

theguardian.com/business/2016/may/25/negative-interest-rates-the-case-against-john-maynard-keynes

For those of you who don't know, right now, over $10 trillion worth of government bonds are yielding a negative interest rate.

You may be asking yourself, "why the fuck should I care?" Well, negative yielding interest rates are a ==FLASHING RED== indicator that the market is out of balance to an unprecedented extent and we are likely on the verge of a large correction.

To illustrate how insane the idea of a negative interest rate is, you must first understand how interest rates work.

Question:
Would you rather have $100 today OR:
```a.``` $110 in a year (10% interest)
```b.``` $100 in a year (0% interest)
```c.``` $90 in a year (-10% interest)

If you're asking yourself why anyone would want to get ``less money`` in the future than money they could get right now, you can understand the completely bizarre nature of negative interest rates. Negative interest rates have NEVER BEEN SEEN before in the history markets. The concept is completely alien in the world of finance, and now governments around the world are issuing negative yielding rates.

Brace yourself, the true happening may be imminent…..

Other urls found in this thread:

businessinsider.com/negative-interest-rates-causing-safe-sales-spike-2016-6
larouchepub.com/pr/2016/160608_neg_interest_rates.html
cnbc.com/2016/06/10/negative-interest-rates-by-ecb-boj-cant-boost-growth-allianz-says.html
fortune.com/2016/06/01/negative-rates-safes/
ft.com/cms/s/0/3ceb364c-191d-11e6-b197-a4af20d5575e.html#axzz4BE6CZitI
telegraph.co.uk/business/2016/05/12/negative-interest-rates-spark-record-gold-rush-as-demand-for-saf/
forbes.com/sites/simonconstable/2016/05/25/what-are-negative-interest-rates-and-should-you-worry-about-them/
desertsun.com/story/money/industries/morrisbeschlosseconomics/2016/05/16/negative-interest-rates-ultimate-absurdity/84439636/
bloomberg.com/news/articles/2016-06-01/european-banks-feel-the-pinch-from-draghi-s-negative-rates
wsj.com/articles/negative-yielding-debt-tops-10-trillion-1464915656
euromoney.com/Article/3559612/Negative-rates-and-the-death-of-banking.html
bloomberg.com/news/articles/2016-06-08/thiel-says-real-bubble-is-in-government-bonds-negative-rates
bloomberg.com/news/articles/2016-03-14/there-s-only-one-buyer-keeping-the-s-p-500-s-bull-market-alive
ft.com/intl/cms/s/0/0623047a-2163-11e6-9d4d-c11776a5124d.htm
reuters.com/investigates/special-report/usa-buybacks-cannibalized/
tradingeconomics.com/japan/interest-rate
youtube.com/watch?v=B4wU9ZnAKAw
en.wikipedia.org/wiki/Helicopter_money
twitter.com/SFWRedditGifs

I've had economic happening blue balls for ages

businessinsider.com/negative-interest-rates-causing-safe-sales-spike-2016-6
larouchepub.com/pr/2016/160608_neg_interest_rates.html
cnbc.com/2016/06/10/negative-interest-rates-by-ecb-boj-cant-boost-growth-allianz-says.html

fortune.com/2016/06/01/negative-rates-safes/
ft.com/cms/s/0/3ceb364c-191d-11e6-b197-a4af20d5575e.html#axzz4BE6CZitI
telegraph.co.uk/business/2016/05/12/negative-interest-rates-spark-record-gold-rush-as-demand-for-saf/
forbes.com/sites/simonconstable/2016/05/25/what-are-negative-interest-rates-and-should-you-worry-about-them/
desertsun.com/story/money/industries/morrisbeschlosseconomics/2016/05/16/negative-interest-rates-ultimate-absurdity/84439636/
bloomberg.com/news/articles/2016-06-01/european-banks-feel-the-pinch-from-draghi-s-negative-rates
wsj.com/articles/negative-yielding-debt-tops-10-trillion-1464915656
euromoney.com/Article/3559612/Negative-rates-and-the-death-of-banking.html
bloomberg.com/news/articles/2016-06-08/thiel-says-real-bubble-is-in-government-bonds-negative-rates

same
a
m
e

Kill all savers. Behead those who insult the Yellen.

t. fed

So let me get this straight?

They're being forced into offering negative interest rates just to keep the economy turning over?

What's to stop being borrowing money and being paid interest on it? What's to stop companies buying their own shares to inflate the company value?

This is madness.

bloomberg.com/news/articles/2016-03-14/there-s-only-one-buyer-keeping-the-s-p-500-s-bull-market-alive
ft.com/intl/cms/s/0/0623047a-2163-11e6-9d4d-c11776a5124d.htm
reuters.com/investigates/special-report/usa-buybacks-cannibalized/

do you think negative interest rates will ever get to you, goy?
negative interest rates are designed by the Federal Reserve to force commercial banks to loan more money out. in fact commercial banks being for profit organisations, they'll loan as much money out as possible. they're not going to give you money for that, they will still expect a return. it's just the Fed is going to "tax" the banks on holding onto money.

also negative interest rates will probably hit personal accounts one day. when this happens, shit has really hit the fan. remember when Greece ran out of money and everyone was trying to get physical cash as quick as possible? yeah, that's going to happen when people realise their personal accounts are being taxed. but the thing is, we don't have enough physical money in circulation to account for accounted money. so the supply will run out really fast

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Words like "collapse" "explode" "meltdown" "die" "large correction" "catastrophic" etc etc are not helpful - they reek of scaremongering.

When somebody is unable to explain the situation in simple terms, they don't understand the situation and should shut up.

You're fucked m8

People with large amounts of cash have a problem where to store it. If you leave it in a bank, the bank could collapse and the deposit is not insured. If you buy something stupid you could lose a lot of money. If nobody wants to pay you to borrow your money because they can get unlimited money from fractional reserve banking, then you've got a big storage problem.

With very little inflation the risk of money becoming worthless in the short term is low, so why not pay money so that your cash is insured? You have a claim with a bond to the assets pledged, so you are protected. It is preferable to leaving your money in a cash account where the institution might fail and you have no claim to anything. Hence a willingness to pay for the privilege of owning a super safe bond.

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I just did explain the situation clearly, with many sources

Scaremongering hype doesn't count as "explaining"

Negative rates mean inflation will remain very low which is actually excellent news for savers. It means their currency will retain its value longer.

But it's bad news for borrowers and most businesses are borrowers because they buy on credit, so it means the economy will remain sluggish.

I'm not scaremongering.

Do you think Bill Gross, who was the former money manager for Pimco, the world's largest bond house is 'scaremongering' when he says that negative interest rates are a "supernova waiting to implode in on itself"?

Negative sovereign yields have never been seen before. Period. It is an extremely dangerous precedent and means that people are content losing 1% guaranteed than probably losing much more in equities.

Oh, ok. Everyone return to normal.

What people don't seem to understand is that the whole world economy is built on a lie: The lie that the American consumer is natural and not a creation of Corporate Capitalism. They've run out of ways to keep people consuming, and this is the only option left. That's what is really happening. Crash soon.

holy shit you are retarded

This is absolutely false. It has happened many times before. Japan has had negative interest rates for most of the past 20 years.

Central bank lending rates have never been negative until January of this year, you are wrong. You may be thinking of GDP and if you are conflating those two, please stop talking

>tradingeconomics.com/japan/interest-rate

*in Japan

This is why the elites want a cashless society.

No only they can stop goys from being able to spend money, but they can also prevent people from taking their money out of banks to prevent banks from stealing their money.

I love how everyone ignores my comment.

CAPITALISM DOESN'T WORK RETARDS

Thats because your comment is retarded. We have nothing even related to capitalism today in America or anywhere else

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see

You're a fucking idiot. If we went to "true capitalism" now, the economy would crash. That's exactly why they instituted the system they did. Learn your history, user.

see;


America is not capitalistic in the slightest bit.

125 years ago, sure.

When women get the right to vote everything turns to socialism turns to communism.

see

lolbergtardian pls go back to cuckchan. no one wants you here.

No one wants YOU here commie faggot

How did I come off as a lolberg?

If anything you are with your idiocy. You don't even understand that the US isn't a capitalist economy and has been socialist for decades. The only reason it survives as socialist for so long is because it has had incredible wealth to bleed from itself. It's currently at the tipping point of no return. If we get anyone but Trump as he says he is: it's all ogre. Doesn't matter if it's a dem or a "conservative" [sic, read: cuck].

I'll say it again: GTFO kike. No one wants you here.

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Protip: the Founding Fathers weren't libertarians - the were republicans. also, see

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GO BACK TO REDDIT SUMMERFAG

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reported for shitposting

obviously linked to wrong one accidentally


check my digits niggers

...

So much sliding in this thread

reported again. go back to reddit.

also, filtered


EVERYONE SAGE AND REPORT THIS SUMMERFAG

Summerfag, you don't slide threads, you "derail" them. You slide boards. Jesus fuck, learn your fucking terminology

LURK MOAR

I hope all you summerfags know that you're just making asses of yourselves, and your little passive-aggressive faggotry only works on kiddies on cuckchan. I remain unrustled.

Get the fuck off my board faggots

Nigger you're retarded, do you even know what republican means in the traditional sense - specifically for America?

It means support for a democratic republic with tiered and separate power, it has absolutely NOTHING to do with the economic system deployed. The original concept of the republic in this country was an executive elected by representatives in good interest by relatively detached from the public and states, senators for the states interests, and the house for the public. The reason this worked was because the federal government had limited power by the constitution that all powers not given to it were left to the states.

We haven't had the original (and well functioning) republic since before the 1900's, now the public elects their senators, reps, and the president from a very limited selection of candidates that are not trust-worthy. People used to focus on their rep and their state government, which was excellent as the public is almost always low-info but can see first hand the results of who they elect to run their state. Nowadays people are naturally MORE low-info due to being repelled by the massive amount of into required to keep up with both state and federal government politics and policies. Combine all of that with the fact that states rights don't mean jack shit now with a very wide-spread propaganda system, and you've got yourselves the most wasteful, degenerate, mismanaged, debt-powered piece of shit centralized power the earth has ever seen.

Libertarianism was the very flawed castrated-lobotomized kosher certified resurgence of those values as an attempt to divert the rise of American Nationalism. Nowadays it's even more fucking retarded with Gay Johnson advocating against freedom and liberty, anarchists like McAfee, and that dancing fat guy.
However, before it's cuckening, it was the closest modern thing we had ideologically to classic American republicanism.

I think this thread trainrekt so fast because no one on Holla Forums actually understands economics.

If Trump is legit and a huge economic crisis happens while he's in office it's really a perfect opportunity for him to have a free hand to cleanse this usurious and bubble-inducing financial system.

This shouldn't be surprising considering the average person on Holla Forums thinks that the economic policies of NSDAP Germany are the greatest thing ever and no other country has tried to replicate them.

There are a few of us here who actually understand economics but whenever we try and explain things shills and spergs come out of the woodwork and shit up the thread into oblivion.

I think Holla Forums just got bored of pure economics after the Paul-era libertarian domination when interest shifted to more fundamental concerns like demographics. Now Holla Forums mainly seems to care about economics as it relates to demographic or national issues such as international elements, disloyal capital or mass immigration. I guess the people who focus on pure "politically-incorrect" economics congregate on sites like zerohedge.

This video is an example of the synthesis of nation(race) and economics.

Always an obstacle of course.

More like everything went shit after Trump's campaign started and the board is now filled with redditors who missed all that discussion, and now we don't even have a chance to start everything from scratch. Hopefully they will go away from this site after the elections, and we can rebuild the board, but I won't hold my breath.

Holla Forums shifted away from economics because it's the Jew's battleground.
When you want to win, you force your enemy to fight you in your territory. Culture, history, and memes are our strength. We have millions of examples of Jews destroying cultures for their betterment, and can deliver those examples in a normalfag digestible format.

All we have to do is shine a light on Jews and we win; whereas if we were to focus on economics, we would have to simplify and disseminate complex ideas that can't be simplified in an entertaining format.

I'm more worried about future shilling/subversion techniques especially when bots start becoming indistinguishable from real posters. At that point the only way to maintain board integrity would be to vet every person before they participate; but that undermines anonymity.

Assuming there aren't full machine intelligences now, we would be able to tell the difference.
If the introduction of bots is sudden, the shift in the overall tone of board will change.
If the introduction of butts is gradual, they will make enough errors that they will stand out and you'll see more >>>/reddit/ in threads.

How about this?

Of course, it only works if the government is small enough, so the tax is only about, let's say 2-3% in every 3 months. Imagine how much cheaper everything would be if there are no other taxes, I think it could offset that constant but small loss.
Also, it should be noted that I'm not from Burgeristan, so I have no idea if it could work over there. I think it wouldn't.

If its going to be negative interest rates that does it i dont know but this whole shitshow is going to have to come to an end sometime in the next 20-50 years. We are passing the points where countries can even pretend they are going to pay their debts anymore.

It's fucking great watching final death spiral of fiat money and entire state control system that will be dragged with it. It's inevitable, keynesian shills can only postpone it by inventing some new exotic financial instruments, but I dont know what it could be? Quantum economy? Dollar can be at two accounts at once?

Its going to be pic related

Schrodingers dollar, when in a bank account it both exists and doesn't exist at the same time and the longer it stays in the account the more likely it is to not exist. Better spend it goy before it disappears!
Dollar tunneling, dollars have a chance of to tunnel through the barriers separating bank accounts. If you don't spend it goy someone else will!

lolno the Jews battleground is politics, economics is just one of their favorite areas to direct government at.

youtube.com/watch?v=B4wU9ZnAKAw

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I started a thread about negative interest rates here about a year ago and everyone here said that this will never happen and even the kikes wold never pull this shit

It's not even Keynesian anymore
It's this unholy amalgamation of all the most jewish aspects of every major economic school of thought

...

Its still what Hayek warned Keynesianism would turn into, although I doubt even he would have predicted negative interest rates.


Henry Ford was actually a believer in Georgism, which combines certain aspects of common ownership of land with strict free market principles. Georgism is opposed to things like central banks and fiat currency (the latter more than the former).

First, you increase exponentially the amount of debt with ridiculous (positive) interest rates.

Then you subtract the amount of circulating paper available through negative interest rates in order to make the paying of these debts literally impossible, simply because even if you sold the entire Earth as an asset the amount of paper available in the economy wouldn't change and because we've decreased its amount with these negative rates you just can't pay the original debt, which was originally built on a higher amount of paper available (through inflation).

This has probably been done on the future prospect of competent political leaders that might've been able to rebalance the debt with sensible economic policies, such as could be Trump's case.

I'm trying to remember which US founding father proposed limits on the amount of land a person could own. He feared that the aggregation of large amounts of land or money in one mans hands would lead to undue influence of the political system by the very, very rich.

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great, so question for the economic Holla Forumsacks, what is your educated guess on cryptocurrencies?

All I know is that they can be corrupted by some side holding most of the currency, but how bad is it in comparsion with normal fiat currency.

Could it be a viable solution to central banks? And if not do you know what could be made different for it to work?

Serious questions

and I mean different from economical point of view, not technological

Its too hard to tell, if governments and central banks collapsed tomorrow one can make educated guesses about most aspects of the resulting free market but the means of exchange is mystery. The only reason why free market economists say gold and silver is a sfae bet is because its the goto tried and true system when fiat currency collapses, cryptocurrencies are still very immature (just look at the blockchain bloat and 'dust' issues) compared to physical assets so any guesses about their place are nothing but stabs in the dark.

kek

Japanese 30y: 0.26%
USA 30y: 2.45%

You might ask yourself, who buys JGB when they could buy U.S. debt, or even possibly Yankees? Some would say different countries pay different amounts based on creditworthiness. But that doesn't hold here, because Japan is further down the road to oblivion than the USA is. Japan once at least had the advantage of a positive trade balance to offset other problems, but that is gone now.

Technically correct is the view that investors are anticipating that over the long term the Japanese yen will appreciate about 2% per year against the USD. If people didn't believe that, you could try to arbitrage it. But foreign exchange futures don't go out 30 years, so there's no enforcement via arbitrage. And really, for such a length of time, why would one believe Japan is in better position to weather adversity than the USA? The expectation for currency movement over such a span should be related to investment risk when that risk is so high.

Observations like this make investors think the markets have become disconnected from the economy. Money managers only think of momentum, while people with their own actual wealth to protect ponder over the best way to take cover.

But don't worry. Yellen doesn't need to do any more quantitative easing right now. Her work is being done for her, as foreign banks buy U.S. debt because it doesn't have negative yields yet.

Because Japan still has a homogeneous population and a conservative culture. The Nips fell off the "infinite growth" bus because they reached the carrying capacity for their country, but Keynesian economics do nothing but wreck countries. Right now all they need to do is reorganize the excesses in urban populations back to the rural communities. Other than that, it's just about waiting through the Boomer die-off to reduce the population to a sustainable level. Oh, and executing foreign influenced politicians and bankers during an imperial restoration accompanied by full re-militarization.

Japan is in far better shape than most countries, certainly the US.

Japan's more homogeneous culture will help them after their bankruptcy. But that doesn't help the people investing in their bonds.

DEFLATION?

The whole US dollar is in the state of inflation right now.

the fact is economics is merely the shadow of domestic and foreign policy.

major players in world markets are defrauding their host populations because they've subverted populist sentiment in governments with the same sneering elitism you've invoking right now, implying that any effort to protect consumer interest is inherently anti-business and must fetter productive growth.

make no mistake friendos you are the cancer.

crypto cannot effectively replace government issued fiat. ultimately the value of state currency is backed up by guns.

Fucking STEM lolberg autist.

Wait until the Rothschild cryptocurrency comes along. That one will get all kinds of government imprimaturs.

You guys are retarded - that money doesn't exist, it's a virtual number, so they don't care if they get a little bit less of something they made up, it doesn't matter. It's just another jewish scheme to make money.

You don't get rich making money and then dumping it out a helicopter. Use your brain, if you have one.

The key is deflation - the banks make money dear and that kills the economy but their loans stay valuable and crushingly impossible to repay. That's how you milk the cow. The inflation part would give all the borrowers a break and hurt the banks holding loans so stop waiting for that to happen again. But if it does happen, rejoice.

It's not money, it's currency.

You should be scared you fucking pleb. What happened in 08 is going to look like a blip compared to what is coming. The house of cards that collapsed then has been rebuilt more ridiculously than even before. Everyone with any sort of wealth should be worried.

This. Most plebs don't have the patience to try and understand economics. Even fewer have the intellectual capacity to identify it for the voodoo it is as well.

bump because fuck those JIDF or retarded autist chriscucks with their slide threads about "meme magic" and "kek worship"

When is the last time that FDIC insurance limit was raised?

2008?

Don't forget that while a natural reaction to this would be to withdraw money from the bank, the Kikes are also pushing zero-currency

If you're just wanting to store it, gold remains the sensible go-to option.

I am utterly convinced this is already the case. I've noticed the board pick up some odd behaviours that are difficult to pin down, but there are definitely boundaries to what you can discuss here without getting shut down.

I also suspect that there may be some sort of filter bubbling going on, more sophisticated than mere shadowbanning. I currently have no way to accurately assess this though.

The picture is figurative retard
en.wikipedia.org/wiki/Helicopter_money
TL:DR is they print USD and just give it to everyone without question. They of course give more to themselves but the primary function is to keep the system being used by the goyim (the fiat currency system is almost entirely dependent on confidence, people lose confidence and the whole thing collapses).


Actually with NIRP gold becomes an investment with annual returns.

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You mean expensive as all that money is wasted on private security firms, private duplicate transports, utilities, etc…

And shitty too, private won't even lay a fucking fiber line to me after 5 years and running the trunk 100 feet away.
When i am willing to pay the contract work to make it so, needing only their stamp.

Simple fact is private is a lazy shitty group wanting the most profit for the least work, including doing nothing and making you do the work.

Government will expand to control everything as you become a cog in a machine as well, but you at least won't delude yourself thinking you can be government.

As things go, the only value money has is what people with weapons say it does.
Bit coin has no value, gold has none.
It has an ascribed worth.

A US dollar note is worth one dollar, exactly as it says on the front.

An ounce of gold bounces, and still isn't accepted in near all places.

In a disasters, gold is only useful for a week if total, much longer if the disaster is merely local.

Post world disaster and restructuring, gold has no worth again as people have more important things to do than look gaudy, all while there is alarge supply of jewelery already.
People will be more interested in your finished goods than gold.

At best you will trade heavily against you, at worst sht by someone more willing than you to survive.

Way to punish savers and encourage people to spend, you fucking retard.


Potholes. Argument destroyed. Now the current tax system IS shit and the tax rate is too damn high. This should be lowered…how? By cutting excess and waste in government, such as our billions of dollars in aid to (((our greatest parasite))) every year and welfare queens.

I'd also encourage "consumption taxes". These are the most ethical. They don't punish savers, they reward them. They punish wasteful people. If you don't want to pay them, just avoid buying what is taxed. Currently we do not tax food and clothing…I would change that to just food because people buy way more clothes than necessary. Food and medicine should not be taxed. Everything else should be, especially luxury goods. Taxes on held wealth like you suggest ensure the jew has access to every dime you have for all eternity, constantly nibbling away at your nest egg. The only ethical taxes are on income and on consumption, preference to consumption as income tax can dissuade people from self improvement. Ideally, we lower income tax to 5-10%, maybe up to 15% on people earning more than 400k a year as individuals. Then jack up consumption taxes. Reminder food and medicine should be exempt. Maybe 15%, or 25% on luxuries like new cars, boats, houses over a certain square footage, jewelry, watches, etc. Why? Economics is about obtaining optimal (national or individual) use of limited resources. A consumption tax does just that. Tax on held wealth does not, tax on income does not.


Wrong. An economy that rests on ceaseless and excessive consumption is destructive to the state and its future. Our goal should be improvement and investment in ourselves, like infrastructure and technology, not on buying junk and crap until we drown in it.


So at some point, if the borrower holds it for many years, they have no further paid amount than someone who paid it back at that time. You could take out a loan, hold until it's maxed, and thereafter there is no interest on it. Great strategy! How a fucking bout we use microlending. Instead of borrowing from a bank or credit card at 30% interest, borrow from some small investor who is happy to make 6% returns.


Gold is a shiny rock. The only value it has is what we give it. People used to use shells as currency…I don't see people hoarding shells anymore. There is nothing inherently valuable about gold and it is not the "one true money". You're fucking retarded, stop learning economics from goatfucking desert herders.

Negative rates are not necessarily bad. They strengthen the value of the dollar and correct it after decades of inflation. One side effect is bad, that is encouraging people to spend rather than save. The average person would not be hit with this too hard. After all, they don't have much, and up to now they've been content to let 3% annual inflation eat their savings. This mainly hits holders of large quantities of wealth. It's no secret that the mega-rich hoard wealth, prevent it from circulating, necessitating inflation and money printing to keep enough running for the rest of us Think of a river of money that travels in a loop. There's a leak, that leak is hoarders, they siphon off 3% of the flowing currency every time it comes around their way. That's a lot! So you need to put more in or else the river dries up, hence the need for inflation. Negative interest rates, in this case, are a way to force them to put their hoarded pool of money back into the river. As I said, the average person already loses 3% of their money a year to inflation and likely has no investments, this won't affect them substantially.

Also, investors can still make money. The federal bond rate is a baseline. Added risk in investments increases the interest rate. Even if the fed rate is negative, after adding for risk compensation, the investment rate may be positive still. And with no inflation this is a real positive return. Whereas with current inflation of 3%, if you made 1% on an investment your real return is about -2% (there's a fancy calculation for it but it's roughly the same as basic subtraction.)

Inflation is the jew that kills your nation and currency. Inflation should be 0%, value of wealth should be stable. The only reason they bump up inflation is to, in keynesian, lower unemployment artificially. However, we currently have a bunch of trash working unnecessary jobs because of this, stealing wealth from every business. Fuck them. Also fuck welfare, let them starve or find a way that isn't the equivalent of a state handout on the backs of everyone else. Like I said, if inflation is stealing 3% of held wealth from every person with savings/investments, and the purpose is to lower unemployment, it is no different than welfare.

Welfare is a safety net, not a hammock. Time to kick off the loafers and leeches.

Good, fuck borrowers. All it does is enrich the banks. All investments, if not affordable by an individual, should be funded with real money, not loaned money, by a pool of investors. This is what we had back in the old days, the 1700s and so, and we had some extremely profitable companies yet. Having a pool of investors sharing the returns off that is better than paying interest to a (((bank))). I hope it does change the borrowing habits. And fuck people who take out mortgages, all that does is support housing's cost inflation like in the pre-2008 bubble. Well we're in another bubble now. Time to pop! Fuck mortgage holders, they're insufferable morons killing the affordable housing concept.

I like the way you think user

I took out a mortgage last week.

When the choice is between paying my mortgage at a fixed cost and paying my landlord's mortgage + premium with rising rent payments, I'll take the former.

3 ways to correct (temporarily) the economy:
* austerity
* printing money
* lowering interest rates

The reason the economy can no longer grow is we have litterally been doing these 3 things for years now, and we're reaching the limit.

It's a 100% sure The Happening will happen. The true questions are:
* when?
* will it be corrected (temporarily), paving the way for other Happening or will it be the Happening of Happenings, crashing the economic system of modernity and the whole infrastructure on which our societies rely on?

Thanks OP, eco threads are very important.

Or buy a house you can fucking afford you retard.


Why would they ever stop raising the prices if faggots like you buy no matter what? Mortgage availability supports housing cost inflation.

The long term solution can only be done correctly if Wall street is neutered and the banking structure is nationalized. The money games with the "too big to fail banks" and the financial bubbles and other associated woes of the big banks need to go. The goldsmith's game of fractional reserve banking is the key. It is governments that allow private entities to keep these profits since 1913 and the profits of this financial game are rightly due the government as the founding fathers of the United States correctly recognized. With the fractional reserve profits in the government's coffers instead of private hands the incentives are finally all on the correct sides of the equation for a true equitable economy that doesn't depend on taxation for government funding.

That doesn't change the fact that I'd be paying rent in the alternative scenario; because there are no houses I could afford to pay cash for.

Yes, and? Why should you be able to afford a house right out of high school? Either get roomies for a shared place (evidence: Sherlock Holmes, this was common back in the day pre-kike shenanigans), live with parents (the most popular method right until kikes tore families apart), build your own house, live in a shitshack, pay rent, etc. until you save enough to afford a house in cash. Mortgages are literally retarded. You don't want to pay interest on the most expensive purchase you will ever make for twenty years. You can also simply purchase a condo/apartment rather than a house, and it is usually cheaper.

Thing is, you are the serf class. It was never sustainable for every serf to get a top-class house right as soon as his balls dropped. It's entitlement. Imagine if every person wanted their own airplane. That would be ridiculous. Just because you could get financing, would you buy an airplane?

Each person can literally save 20k a year with a modest job. If you have a working partner, you can afford a house in cash in less than five-ten years if you invest this. Oh look, that's less time than a typical mortgage runs for. Keeping in mind, if everyone adopted this method, housing prices would drop, and then you could afford a house even faster.

But keep paying the mortgage man. Reminder in the initial years, your payments are nearly all just interest. "Building equity" is a delusion from people who never looked at an amortization table.

If people are willing to buy an asset no matter the price, the price keeps going up. Financing just makes this problem worse. Financing simply makes it more unaffordable over time. But it's a delayed effect so short-sighted retards like yourself don't understand cause and effect. See also: university.

I'm in the same scenario. Either buy and be a slave to a loan or get raped in the current rent bubble. I'm choosing to buy soon.


I totally understand what you are saying. But the only houses anyone can "fucking afford" are in ghettos.

Good luck finding a home for under $60k that's worth moving into. Foreclosures exist, but investors often scoop them up first.

Like mentioned I'm also in a tight spot because while that's cute that I can save up to purchase a house in cash with time, I'm still paying high rents in the mean time. Because ya know… I have to fucking live somewhere.

The average rate of inflation over the last 100 years is something like 3.8%, and my mortgage is 3.75%.

Even if I had the cash, I'm better off taking the mortgage.

The opportunity cost is huge to be flushing money down the drain for rent.

This is the same shit as public transport. If normal white people started using it, it would no longer be just full of niggers and crackheads. Similarly, if white people move to "the ghetto" it ceases to be a ghetto. Or we could all just name the elephant in the room and point out that niggers destroy everything they touch, and do something about it as a nation. (White liberals will pay 5x as much for housing away from black people yet claim not to be racist. It's retardation. They believe exactly as we do, but are too socially afraid to state so.)

Why is your rent so high? Get roommates or move somewhere cheaper.

What inflation 80 years ago was doesn't affect you. Current inflation is around 3%, yes, and theoretically if your mortgage rate was less than this or close it would be financially better to take a mortgage, but that doesn't take into account that the payments are stacked so the first years you pay nearly only interest and don't hit the principal.


Heh. Funny you should mention opportunity cost…rent is maybe 700 a month, whereas for a house you need a 20% down payment, so at minimum 20k, at reasonable most 100k. If we're talking about rather investing that, which option really has the opportunity cost? Hint: buying the house, retard. Thanks for composing my argument for me. 20k at a 6% return is 1200 a year, not even considering compounding interest. 100k down payment = 6k a year opportunity cost, which is $500 a month. In other words, the down payment, if invested, could subsidize your rent by a quarter to half. In the meantime you don't touch the principal, only add to it with subsequent years' savings.

Unless you get a really damn good deal on a mortgage, it's probably better to save, invest, and pay in cash in like I said 5-10 years. Let's take again 6% rate of return. Although earned income is spread over the year, let's simplify it. You can, to be realistic, move these dates down by 6 months.

Year one: save 20k x 2 (partner) = 40k. Earn 2400 interest. Take $200 off monthly rent.
Year two: another 40k, so 80k, interest earned is 4800. Take $400 off monthly rent. You still have 80k saved.

THAT is what opportunity cost is, btw. Not your misunderstanding of what rent is.

So, what would a proper response be to negative interest rates? Buying gold and shoving it in a safe or lots of guns, ammo, and beans?

Both. And you should do it always, inflation cause that one dollar tomorrow is worth less then today.

This is future user.

Get ready for a bitcoin world that reacts flexibly with changes in rates.

The thing about cryptocurrencies is that it's electronic.

This is PIVOTAL to it's use.

Because if hyperinflation occurs, it might be used as a way to adapt to it.

Why don't we use memes to counter this?

We know memes.

We might meme the economy out of the shit again.

Oh… but I think they're currently trying to do that.

That's why they pay so much attention to Holla Forums now.

It's exactly what he wants.

I bet some New York Jews want this.

The one doing the hard labor for the greedier Jewish elite.

There's a massive divide occurring.

Nope, gold is not a viable alternative either since most of it is in reserve and owned by major oligarchs.

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What's the problem?
Negative interest rates are a good thing for regular people, especially for those who have morgages and loans, which are usually funded by (((them))).
Negatives interest rates either encourage you to save up your money physically, so that the (((bank))) can't touch it or to spend it on goods.

Good read, but the main problem is what we should do then? Gold standard is bad / pure silver or gold is impractical in a global world, bitcoin has problems (early starters/ blockchain size / vulnerability to potential Quantum Computers etc. ) . The financial collapse will happen - if not this year then at least in the near tuture, we should be trying to figure out if it is possible to establish a fair system or just accept that some people will have an unfair advantage and use gold/silver/oil/bitcoin w/e. I honestly can not think of a satisfying solution. Not to mention we would have to weed out and kill all the masterminds behind the previous system.

Jews make their money through usury, not parking money in a bank account.

This is just a desperate attempt at revitalizing a slowing economy, I don't think most people here understand what it is.

The point is to encourage people and bussinesses to take loans. Normally, let's say you take a $1000 loan, and then over a certain period of time you have to return $1300; with negative interest rates you would only have to return $980 (for example), essentially they are paying you to indebt yourself to increase spending and investment in order to reactivate the economy.

But this comes at a cost and it causes damage in the long run, it's like electroshock therapy, it may get you out of the crisis on the short term but it will kill you if you keep it up too long.

This is happening everywhere, the US has lower interest rates than it should and it is costing the state a lot of money, but the government doesn't want to risk rising them until the economy is stronger because borrowing would decrease and it could result in a recession.

The fact that they are establishing negative interest rates is a clear indication of just how much of a disaster the economy is worldwide. If the gable doesn't pay off they will be in even deeper shit once they go back to positive interest rates.

Land/property is the best asset, especially productive capital like arable farmland, manufacturing tools, 3D printers, etc. Money is fictitious (many people agree on this fiction so it is useful however), wealth is real but cannot be condensed into a single commodity while being 100 percent reliable and immune from manipulation and loss, you can't really go wrong with stockpiling bullets, medical supplies, and food/water though, the most reliable assets are the ones that are always, always going to be in universal demand. Weapons and food are among them because people are never going to stop eating or killing each other. Diversifying your assets (real world assets, not a diversified stock portfolio), is the best way to hedge against any single one of them failing or losing their value.
tl:dr
Diversify assets, stockpile basic necessities and buy land, tools, and property.

About six months ago, someone at the Fed say "Fuck it, this market will never, ever be allowed to crash" I watch the monthly MACD on the S&P 500, and look at this shit.

Literally the fast moving average hit a floor and went perfectly flat for six months.

SIX FUCKING MONTHS

Never happened before, perfectly flat.

Insanity.

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tell me more about what this means, please

The MACD is a measure between a slower and faster moving average. It gives you a sense of the momentum of a market (the if the slower moving average is above the faster, you are in a bear market.)

It's basic technical analysis and a lot of traders use it. Of course, it's mostly bullshit at the individual stock level, using daily measurements. Too noisy.

However, looking at the broader market (S&P500) and using the monthly rather than daily price, you actually get a pretty good view of where the market is in the cycle. It isn't the only thing to look at, but it's breddy gud.

Anyway, if you look at the image I posted, you will see that the fast moving average went perfectly flat, starting about six months ago, coming out of a nose-dive.

This is unprecedented and indicates serious Fed intervention.

I expect it will fail and we will see a gnarly, gnarly crash. When it will happen… dunno.

No, we need to meme it into the ground, to crash (((their))) system around them. Only when the economy is free from the fiat jew can it recover.

they printed too much money with the jewish banking 2008 bailout.

now there will be inflation meaning your dollar that used to make you a dollar menu naire

won't do that anymore

u will be purchasing less with your $


buy ammo guns and a little bit of silver. guns and ammo are way more important

We have inflation because we are coasting on QE, that is trickling out of the stock market, and because of the lies about the strength of the economy.

People (especially Wall St.) are starting to wake up. Wall St. doesn't want to wake up because they've been making money like gangbusters the past 8 years. They are a heard of sheep all moving together, and as long as they don't break off from the heard, they think they'll be safe from the wolves. However, the reality is that they are looking at the wrong economic indicators, which have been puffed up by the US Government (Obongo) and Yellen (a democrat) to keep the fed from being shook up (they want Hillary). However, it looks like the reality of things is going to get here before they can pretend things are OK long enough for Hillary. Home ownership is in the toilet. Labor participation for men is the worst its ever been. Debt is outrageous. Once Wall St. starts to sell off because they get a clue about the true nature of the economy, we'll see massive deflation. Anyone with any money will be holding onto it. That means the supply of money will drasticly tighten up, people will lose jobs, and prices will fall. The Fed will go into emergency mode, crank the interest rates to -5% maybe more, and start buying assets (QE) like mad. Then we will flip into hyperinflation.

There will be a brief window of deflation where you will be able to get assets for a fraction of their price, then all hell will break loose and it'll be the Wiemar Republic again.

The only thing is that we might already be in the 'deflationary' period - these last few years when inflation of things like houses and gold flattened out. Next stop could very well be mass inflation.

Negative interest rates as you described just create a 2nd river where the hoarded money travels in another loop, and is again siphoned off to hoards

Instead of printing money for the use of the banks - which creates additional circular rivers, we need to inject the money by making jobs - particularly in improving US infrastructure. Fix the decaying roads, bridges. Run fiber optic to every address. Spend directly on public education. But don't pump it into the financial system where it ends up being hoarded no matter how much you squeeze.

The reason the elite like the money going to the financial sector instead of government works/infrastructure initiatives is because it keeps people precariously employed and unstable - creating a labor market that will take almost anything they can get for employment.

Gold at nearly $1300 already, If Brexit goes through all hell will be loose.

That's the point. They've been trying to remove debt by adding more, and the fed promotes and rewards this behavior by the banks. They either honestly think they can spend their way out of debt or are just prolonging the inevitable for reasons.


I'm pretty sure the majority of the founding fathers had that belief. They saw what happened with Britain the Rothschilds.


It's happened in Europe. I know Sweden and Denmark have done it to stop hit and run investors, the EU did it in 2014 to inflate their currency, and Norway is coming dangerously close to adopted a NIRP.


It make saving money impossible and forces you to spend;

*with Britain and the Rothschilds.

I try to explain the insanity of NIRP to normies all the time and while I think they get it, I also think I come off as a raving loon sometimes.

thanks for pointing this out btw

Negative interest rates are DEFLATIONARY.

Our current monetary system is based on DEBT, which totally dominates all other forms of currency. Negative rates destroy debt and are therefore heavily contractionary on the broader economy.

Steve Keen is crucial reading here.

I definitely advocate owning weapons and PM, but I don't think we will be seeing hyperinflation in the west any time soon.

I've always liked Bill Still.
Where does he sit with Holla Forums?

Silver is rising again as well, its nearly at $17.80 and is the highest its been since late January 2015.

That only works if peoples' wages increase or don't decrease over time. What we are seeing now is entire industries closing up, and people who used to have a good job are now working at Subway and Walmart. They are taking a huge hit on income, and barely getting by using debt to make up the gap. It's untenable.

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