SamuelRSmith on 09 June 2012
| Soleron said: The governments don't want to admit they have no control over the economy; they are pulling hard on the only lever they have but it's up against the endstop. ...that said negative interest rates aren't impossible to implement. |
I hear that thrown around a lot, but what does that even mean? I mean, zero percent interest rates indicate to the market that we've eliminated scarcity (as the markets would be investing/consuming as if there are unlimited resources available)... ahat does a negative interest rate even mean?
This is my problem with politicians/economists/media outlets who talk about zero, or near-zero interest rates (or anybody who believes that the interest rates can be effectively centrally planned), is that they are proving that they don't even know what an interest rate indicates. It scares me that we have people trying to control something of which they don't even understand the basic principle of.
