tag:blogger.com,1999:blog-4912713243046142041.post688999010410579652..comments2024-03-28T23:22:41.774-05:00Comments on TYWKIWDBI ("Tai-Wiki-Widbee"): Negative interest rates and currency wars - updatedMinnesotastanhttp://www.blogger.com/profile/01382888179579245181noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-4912713243046142041.post-41814908325316812822015-05-04T10:09:35.968-05:002015-05-04T10:09:35.968-05:00The same thing happened after world war 2 (it has ...The same thing happened after world war 2 (it has a cool name in economic circles: financial repression) to pay off the war debt (or actually to grow the economy such that the war debt was a small fraction of GDP and hence not a big deal, it was never actually paid off.<br /><br />An ordinary person should do the same thing in a system of financial repression that they would do in normal economic times: live below (or at least within) your means, don't buy on credit (which doesn't seem that expensive except inflation won't help you reduce your debts and deflation will drive you into debt slavery), pay down debts, have at least six months of income saved for a rainy day, diversify your investments, don't invest in penny stocks or magic beans, don't let a "professional" manage your investments (unless you're George Soros or know George Soros) - there are lots of Vanguard funds that will do at least as well as any advisor that an ordinary person might have access to and will probably do 1 to 3% better.Bubhttps://www.blogger.com/profile/07367554651401120819noreply@blogger.comtag:blogger.com,1999:blog-4912713243046142041.post-77194897091666568102015-05-01T07:55:38.167-05:002015-05-01T07:55:38.167-05:00Thanks for the explanation, all. When I heard, &q...Thanks for the explanation, all. When I heard, "Negative Interest Rates," I thought the banks were now _paying_ people to borrow money. Silly me.<br /><br />Lurker111<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4912713243046142041.post-51335065324567684002015-02-21T14:10:49.337-06:002015-02-21T14:10:49.337-06:00As a regular person you can do very little other t...As a regular person you can do very little other than vote for people who will actually have your interests at heart. In the US, that probably means voting for a non-D or R politician. Rs are nothing but slaves of the banks, and since NY elects Ds, Ds owe banks a lot as well.<br /><br />There is a real issue with the fact that governments, central banks and regulators are trying to keep 'the markets' quiet, while throwing regular people under the bus. Low interests are great for people with debt. But not for people with savings. And most of us regular people have quite a lot of savings through our retirement, in whatever form it comes.Nepkarelnoreply@blogger.comtag:blogger.com,1999:blog-4912713243046142041.post-87215515992488785942015-02-21T08:39:44.957-06:002015-02-21T08:39:44.957-06:00thanks for the future cheer.
I-)thanks for the future cheer.<br /><br />I-)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4912713243046142041.post-25953544112387340332015-02-20T22:46:40.193-06:002015-02-20T22:46:40.193-06:00If you're the type of person that needs a 401k...If you're the type of person that needs a 401k to live your later years in life, than you are "expendable" in the eyes of the central bank and the governments that pull their strings.TheReaperDhttps://www.blogger.com/profile/07376490778078199724noreply@blogger.comtag:blogger.com,1999:blog-4912713243046142041.post-71035575270043849792015-02-20T11:14:45.375-06:002015-02-20T11:14:45.375-06:00wha-do-i-do to save my 401k?
I-)wha-do-i-do to save my 401k?<br /><br />I-)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4912713243046142041.post-73523720612791537722015-01-18T22:13:18.207-06:002015-01-18T22:13:18.207-06:00It seems mildly insane that they didn't do thi...It seems mildly insane that they didn't do this gradually. Oh well, I guess it is good for all those prisoners of war that are entitled to their pay in Swiss Francs under the Geneva Convention.nolanddahttps://www.blogger.com/profile/12708768497461983779noreply@blogger.comtag:blogger.com,1999:blog-4912713243046142041.post-49530587012869120622015-01-18T10:05:47.681-06:002015-01-18T10:05:47.681-06:00Tx. Nice to see they're not applying it to sa...Tx. Nice to see they're not applying it to savings accounts.Minnesotastanhttps://www.blogger.com/profile/01382888179579245181noreply@blogger.comtag:blogger.com,1999:blog-4912713243046142041.post-65816755070101536762015-01-18T09:35:32.289-06:002015-01-18T09:35:32.289-06:00http://www.nytimes.com/reuters/2015/01/18/business...http://www.nytimes.com/reuters/2015/01/18/business/18reuters-credit-suisse-negative-rates.html?src=buslnAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4912713243046142041.post-22841493940839750012015-01-17T09:02:49.645-06:002015-01-17T09:02:49.645-06:00AFAIK European credit institutes have to deposit a...AFAIK European credit institutes have to deposit a certain percentage of their "pocket cash" at the European Central Bank, for that money they get an interest. Out of that ECB-money banks can also take loans for rates that are controlled by the ECB. Basically you take a loan from your bank for 4% and the credit instutute takes the same loan at the ECB for 3%. These rates now have been negative for all of Euro-regions for year or so. So banks lose a little money every night when they have to deposit the percentage at the ECB. <br />Basically money is cheap to borrow, to encourage people to spend or invest. Credit institutes actually make a killing because at low rates people are much more willing to take up a loan, but they still charge like a 1% difference for their service. <br /><br />Pretty sure the federal reserve interest rate conlroll, works in a similar way. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4912713243046142041.post-51789826756116678022015-01-16T16:45:43.397-06:002015-01-16T16:45:43.397-06:00*laughing* seriously? Note I never said that I h...*laughing* seriously? Note I never said that I had an account with the local bank. If they're going to charge "service fees" like that, why should I let them use my money? <br /><br />But you'd said you'd never heard of "negative interest" or changing people to keep their money. Really? You've never seen "service fees"?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4912713243046142041.post-88462756498677951912015-01-16T11:36:59.039-06:002015-01-16T11:36:59.039-06:00You ought to take the time to check into local cre...You ought to take the time to check into local credit unions. Seriously.<br /><br />http://tywkiwdbi.blogspot.com/2011/12/big-banks-dont-want-your-money.htmlMinnesotastanhttps://www.blogger.com/profile/01382888179579245181noreply@blogger.comtag:blogger.com,1999:blog-4912713243046142041.post-43442389952949129352015-01-16T11:26:28.261-06:002015-01-16T11:26:28.261-06:00You see a negative interest rate all the time, jus...You see a negative interest rate all the time, just don't realize it. It's typically called "service fees" <br /><br />For example, if you have less than $1000 in our local bank, they charge a "service fee" for you to have a checking account. It's like $100 a year, or a negative 10% (-10%). If you have $1000 they stop the service fee, and if over $5000 they pay you interest on the monthly minimum balance in the checking account (a whopping 0.10% interest...) <br />Anonymousnoreply@blogger.com