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>Picking those assets over the stock market is still an investment decision, and that decision comes with its set of risks and potential returns. I see your po

>Picking those assets over the stock market is still an investment decision, and that decision comes with its set of risks and potential returns. I see your point, but I honestly think it's a nuance you say it's an "investment decision" to say keep it in cash instead of the stock market. Am I almost making a decision to keep money in cash instead of beanie babies? Yeah I guess, but that doesn't really change my argument. Even from your viewpoint, you personally probably feel that you "need" to invest yourmoney to keep making money so they have more money in the future. Most people think that you have to. And hey, they aren't really wrong. The system basically forces you to "invest" in the market because that's the only way you will have any money for retirement. But that is where I think the system is completely broken. It SHOULD be a choice, but it's not. And it's my entire point, the system was shifted from company retirement/ss to putting ALL the risk on the individual (to hopefully make money in the market) AND they artificially make the market keep going up which benefits wealthy people even more. And I'll reverse the problem here- I don't think you are "choosing" to invest in the stock market. You are investing in the stock market because by design it's basically the only choice. That is the issue.

imtringued 5y ago
The only real solution to this problem is to actually let the real interest rate on certificates of deposits to be 0% and have a small demurrage fee on liquid demand deposits. The point isn't to be evil and make people lose their money, it's to make the market actually work. The positive range of interest rates tells people to save more and since people have a natural tendency to save (e.g. hoarding instincts) regardless of market conditions, politicians have tried to keep the interest rate positive through inflation targeting and fiscal stimulus (government borrowing raises interest rates). This basically means debt keeps growing endlessly since savers are guaranteed profits through loans that shouldn't exist. The negative range of interest rates essentially says that the economy has enough savings and that they should be allocated away from those who have too much (meaning they will be allocated to those who have too little savings, primarily those who are in debt which then reduces total savings and the money supply).

imtringued 5y ago

The only real solution to this problem is to actually let the real interest rate on certificates of deposits to be 0% and have a small demurrage fee on liquid demand deposits. The point isn't to be evil and make people lose their money, it's to make the market actually work. The positive range of interest rates tells people to save more and since people have a natural tendency to save (e.g. hoarding instincts) regardless of market conditions, politicians have tried to keep the interest rate positive through inflation targeting and fiscal stimulus (government borrowing raises interest rates). This basically means debt keeps growing endlessly since savers are guaranteed profits through loans that shouldn't exist. The negative range of interest rates essentially says that the economy has enough savings and that they should be allocated away from those who have too much (meaning they will be allocated to those who have too little savings, primarily those who are in debt which then reduces total savings and the money supply).