Man do you want to get into it? I feel like Ben has not gotten what I meant

What kind of backwards AOC level economics has been going on this night?

Okay kids, wanna go on a journey back this chat room?

It all started when.....

The kind that make Sowell cringe

No, give me the short version.

if you do backwards level economics, you can travel backwards in time !

Nah lets cut the crap

Yeah, right back to the USSR.

you can explain what you meant, maybe i havn't fully grasped what you meant when you said you expect the fed to go negative interest

@conker. We go from first world to third world

see !

Ben is concerned about increased govt spending (rightly so), especially the spending regarding the welfare system

THAT'S progress, according to libtards <:lolz:480186121897377792>

That's because libtards don't earn anything. So nothing has value to them.

ole crazy Ben and his concern about welfare

Okay, so let's look at the govts solution to increaed spending so far (in the US). How was it financed? By lending money

I watched parts of tfm's monkeynomics video again, he actually mentioned that setting up accounts in tax havens would be the sensible thing to do

and if everything goes down, you just fly away and chill out on the beach xD

i need to rewatch it, he went into some good detail on why not to invest in real estate iirc

Oh, okay, I think i get it and where you might infer negative interest.

Let me reframe for you so the others understand.

So one key assumption of mine is that a govt can lend money from a central bank. Am I right here?

The Fed will never give an overt "negative" interest rate.

That would be paying others to use money. That won't work.

Welp Im in a flood

What will work is *inflation*

Nice Day

By printing more money and flooding the market, they effectively devalue older notes.

Yeah we went over inflation as well, that's just a band aid

If that holds up to be true, in a world with negative interest (that I could see coming, at least we EU fags alrdy have it here) you basically finance urself as a govtand get money for it. Am I a fan of that? HELL FUCKING NO!!!!! I see the risks associated with that

You can reverse calculate that as negative interest, but there's no way you'll get a loan, even to another bank, at -0.7%

Will it likely hold for a limited amount of time (maybe until the next BONKERS idea is found)? Prolly

"here, please use my money, it's literally burning a hole in my pockeet" does not exist.

Okay I see the argument with the inflation absolutely

just looks like a civilization in it's death throes to me

But here in the EU inflation has actually been going in the direction of deflation in spite of shitty neg intrst rates

https://www.investopedia.com/terms/n/negative-interest-rate.asp

Can you elaborate on the -0.7% thing? I can't quite follow you there

While real interest rates can be effectively negative if inflation exceeds the nominal interest rate, the nominal interest rate had been theoretically bounded by zero. Negative interest rates are often the result of a desperate and critical effort to boost economic growth through financial means.

Jesus... there's idiots that actually think this would work and they have power.