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[–] brother_tempus [S] 1 point 2 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

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[–] novictim 0 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.

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[–] brother_tempus [S] 0 points 6 points (+6|-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:

we have had enough bubble from the Fed .. e do not need anymore

besides we cannot afford it as the $18 trillion debt casn attest

Keynesian spending is the solution

the failure of QE1, QE2, Operation Twist, QE3, Cash for Clunkers, and the Stimulus Bill which added $8 trillion in debt with n results disproves your opinion

Inflation is the correct penalty for holding cash.

making the poor more poor and rewarding the banks to continue blowing up the equities bubble is not the correct path

6% inflation, a reasonable rate,

make the poor and those fixed income 6% more poor is criminal

This is basic ECON 101.

no basic econ 101 is that supply and demand will correct any imbalances in the economy, especially those created by government. Government delaying the necessary correct as advocated by Yellen will fix nothing and make the inevitable correction even more severe and prolonged ... we see this now with all the stimulus the government has doled out now in our 15th year of this depression

We are in a liquidity trap

created by the Fed ... i am hedged so i have no worries

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[–] greycloud 1 point -1 points (+0|-1) ago 

it will stay like this until china's wage force demands the same wage as our wage force for the same work. right now china's rigged economy means that a free market pushes production into china. there are 2 major solutions to this, neither of which are popular. 1) use the same currency that china uses and consolidate china and the US into one super state that follows the same labor rules and labor prices, making both countries very similar to each other economically (china wins in this deal still because population). 2) kill the free market and drastically increase taxes on imported goods, this destroys our trade relations with other countries and puts them at risk of being absorbed by china).

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[–] TiagoTiago ago  (edited ago)

Only under inflation and only if you're the one lending money to others.