â€œThe worldâ€™s central banks have a problem. When economic conditions worsen, they react by reducing interest rates in order to stimulate the economy. But, as has happened across the world in recent years, there comes a point where those central banks run out of room to cut â€” they can bring interest rates to zero, but reducing them further below that is fraught with problems, the biggest of which is cash in the economy.
In a new piece, Citiâ€™s Willem Buiter looks at this problem, which is known as the effective lower bound (ELB) on nominal interest rates. Fundamentally, the ELB problem comes down to cash. According to Buiter, the ELB only exists at all due to the existence of cash, which is a bearer instrument that pays zero nominal rates. Why have your money on deposit at a negative rate that reduces your wealth when you can have it in cash and suffer no reduction? Cash therefore gives people an easy...
Anne wrote: As the heat gets turned up, we can remember that "from Him and through Him and to Him are all things. To Him be the glory forever. Amen." Rom 11:36
Greetings Anne. Thank you for the verse it went well with what I'd just finished my thoughts with: Rev 5:9-12 And they sung a new song, saying, Thou art worthy to take the book, and to open the seals thereof: for thou wast slain, and hast redeemed us to God by thy blood out of every kindred, and tongue, and people, and nation; And hast made us unto our God kings and priests: and we shall reign on the earth. And I beheld, and I heard the voice of many angels round about the throne and the beasts and the elders: and the number of them was ten thousand times ten thousand, and thousands of thousands; Saying with a loud voice, Worthy is the Lamb that was slain to receive power, and riches, and wisdom, and strength, and honour, and glory, and blessing.
I trust in the light of these things all is well with you and yours. Nice to see your name on board. Gotta go out to work on the cord of wood in the driveway and get it stacked. It will be easier with such strong reminders of His strength. Blessed day to you and yours.
John UK wrote: Surely Labour could not get back in again, after all the mess they made last time? But yes, with few people understanding politics and economics, they might think life under Labour would be more rosy. At least the Tories are not promising an easing of taxation, but more of the same belt-tightening. Landslide for UKIP?
Sorry John I doubt it, can't vote for my local UKIP candidate because he is an idiot.
BRF wrote: John if labour get in next week it might have start sooner than we think. Our nations love affair with the welfare state as been slowly bankrupting the UK for decades.
Surely Labour could not get back in again, after all the mess they made last time? But yes, with few people understanding politics and economics, they might think life under Labour would be more rosy. At least the Tories are not promising an easing of taxation, but more of the same belt-tightening.
John UK wrote: "The worldâ€™s central banks have a problem." Never mind the banks having a problem. What concerns me is when the unregenerate whizzos who have the account details of hundreds of millions of ordinary people decide to start syphoning off.
John if labour get in next week it might have start sooner than we think. Our nations love affair with the welfare state as been slowly bankrupting the UK for decades.
And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads: And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name. (?Revelation? ?13?:?16-17? KJV)
For security purposes there will have to be an incorporation of some sort of biometrics.
The article states: "As we previously concluded we are being bombarded by moves to restrict the use of cash and demands to ban it all together. These demands seem to mainly revolve around two arguments. One is that "only criminals need cash" which is on a par with the absurd assertion that we should all be fine with Stasi-like ubiquitous gov't surveillance "if we have nothing to hide." The other one is that cash ban would make life easier for central bank planners who are actively undermining the economy with their poicy of debasement."
Interesting article. It doesn't take a rocket scientist to see that our freedoms are gone and like frogs we've been slowly cooked hardly noticing, until it's too late.
How often has it been the testimony of Scripture that the sleepy wake up when things get undeniable, as in Jeremiah's day before the captivity. What a comfort to know that in all of this 'our God reigns', for Jesus Christ with legions of angels at his command is seated on his Mediatorial throne until all his enemies are made his foot stool.
Central banks are corrupt and not government operated. There is hardly any real cash in the economy thanks to franking. Country deficits will never be paid off. Time to hit the reset button but the 1% won't like it.