5 ms·
>So investors were outnumbering borrowers. A microcosm of the global economy: we're awash with capital, hence no one is willing to pay much in the way of inter
by forgetsusername 10y ago
>So investors were outnumbering borrowers.
A microcosm of the global economy: we're awash with capital, hence no one is willing to pay much in the way of interest rates.
- loceng 10y agoInteresting idea perhaps of capital that has an accelerating half-life - invest it or lose it. I can imagine technology and society would develop at a much faster pace.
- msandford 10y agoToo bad the capital stock isn't determined by individuals but rather the Fed; who knows what the interest rate would be in real life if there wasn't massive money printing. Sorry, "quantitative easing"
- Phlarp 10y agoSo, something like inflation along with centrally directed GDP growth targeting?
- maaku 10y agoDemurrage money.
- toomuchtodo 10y agoThis is exactly how negative interest rate central bank policy is designed to work. http://www.investopedia.com/terms/n/negative-interest-rate-policy-nirp.asp http://www.investopedia.com/terms/n/negative-interest-rate-p... "A negative interest rate means the central bank and perhaps private banks will charge negative interest: instead of receiving money on deposits, depositors must pay regularly to keep their money with the bank. This is intended to incentivize banks to lend money more freely and businesses and individuals to invest, lend, and spend money rather than pay a fee to keep it safe."
- fulldecent 10y agoJust look at the price of gold since 1970. And turn the chart upside down. That is the halflife of dollars.
- deleted 10y ago[deleted]