MT Archived Yellen States She Will Make Americans Pay a Penatly For Holding Cash if Economy Sours (reuters.com)
submitted ago by brother_tempus
Posted by: brother_tempus
Posting time: 5.1 years ago on
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Archived on: 2/12/2017 1:51:00 AM
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34 upvotes, 4 downvotes (89% upvoted it)
MT Archived Yellen States She Will Make Americans Pay a Penatly For Holding Cash if Economy Sours (reuters.com)
submitted ago by brother_tempus
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[–] [deleted] 0 points 5 points 5 points (+5|-0) ago
[–] brother_tempus [S] 1 point 2 points 3 points (+3|-1) ago
A negative interest rate can be described as a "tax on holding money: ... a carry tax if you want to picture it
[–] novictim 0 points 4 points 4 points (+4|-0) ago
The cowardly little troll, Yellen, should be saying to Congress that it needs to create fiscal stimulus bills for all the many infrastructure projects we have yet to set in motion: Rebuilding bridges, roads, new electrical grid, solar power plants, wind farms, insulating all homes, etc etc etc.
Keynesian spending is the solution. But the brain dead congress thinks that budget cuts and pay cuts for the wealthy make jobs! We are getting the kind of leaders we deserve here.
Inflation is the correct penalty for holding cash. 6% inflation, a reasonable rate, means that your dollar is worth less as time goes on so it prompts you to spend that money for the sake of creating more money with its action in the market...creating jobs rather than just losing value.
This is basic ECON 101.
The notion of negative interest rates on the heals of ZIRP should scare the shit out of you all. We are in a liquidity trap and the pitch to this airplane is starting to tip vertical to the tarmac. Buckle up. This shit is going down.
[–] TiagoTiago ago (edited ago)
Only under inflation and only if you're the one lending money to others.
[–] pray_the_gay_away ago
Only if you hold it in a
ponzi schemelarge bank.[–] greycloud 1 point -1 points 0 points (+0|-1) ago
the new 20 dollar and 100 dollar bills have crazy technology, i bet you can detect them by satellite. i am pretty sure that having a lot of cash means you are a criminal and that they can take your cash from you with lawful seizure while failing to charge you with a crime.
[–] HenryDavidThoreau 0 points 3 points 3 points (+3|-0) ago
Yella can suck my balls.
[–] Tecktonik 0 points 3 points 3 points (+3|-0) ago
I already pay a penalty for having money in the bank in the form of monthly service fees. And who has money in the bank to boost spending, all of my friends are too busy paying down debt to buy anything shiny.
[–] TiagoTiago ago
Don't forget inflation.
[–] WeekendBaker ago
Have money. Due to paying debt, have no spending money. Same bucket.
[–] brother_tempus [S] 1 point 3 points 4 points (+4|-1) ago
The Federal Reserve would consider pushing interest rates below zero if the U.S. economy took a serious turn for the worse, Fed Chair Janet Yellen said on Wednesday.
"Potentially anything - including negative interest rates - would be on the table. But we would have to study carefully how they would work here in the U.S. context," Yellen told a House of Representatives committee.
[–] Doomking_Grimlock 0 points 10 points 10 points (+10|-0) ago
Burn the Federal Reserve.
[–] brother_tempus [S] 1 point 5 points 6 points (+6|-1) ago
and try the governors and chairman for treason
[–] swinston79 0 points 2 points 2 points (+2|-0) ago
Fuck the Federal Reserve,we should do what Jackson did and get rid of it and go back to backing our money with gold.
[–] brother_tempus [S] ago (edited ago)
I think just like any good or service there should be many currencies ( gold, silver, copper, nickel, platinum, crypto, etc ... ) and let the people choose which one they wish to use and let the market decide whcih ones work and don;t ...
[–] MK888 0 points 1 point 1 point (+1|-0) ago
Start hoarding your cash now. Just make sure it is in a safe place. Your underwear is probably the best spot.
[–] TiagoTiago ago
Isn't that what inflation already is?
[–] pray_the_gay_away ago
Can you really believe a goddamn word that they say? These markets are highly collusive and manipulated.