singular_me
18th April 2015, 06:51 AM
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Expert Says ‘Banning Cash’ The Only Solution to Negative Interest Market Problems
Saturday 18th April 2015
‘As everyone knows by now, the Federal Reserve’s main tool in economic warfare has become hyper low interest rates and, thus, extremely cheap money for large institutions vis-à-vis the controversial reign of QE – quantitative easing.
Now, the how-low-can-you-go climate has created negative interest rates, meaning not only that many investments carry no return but that many deposits cost money.
Well-known Citigroup economist William Buiter says the solution to this backwards market is to reign in the appeal of normal currencies like cash – because it is “causing problems” for central bank manipulation:’
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 — 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.
Read more: http://www.shtfplan.com/headline-news/expert-says-banning-cash-the-only-solution-to-negative-interest-market-problems_04172015
Citi Economist Says It Might Be Time to Abolish Cash
http://www.bloomberg.com/news/articles/2015-04-10/citi-economist-says-it-might-be-time-to-abolish-cash
Expert Says ‘Banning Cash’ The Only Solution to Negative Interest Market Problems
Saturday 18th April 2015
‘As everyone knows by now, the Federal Reserve’s main tool in economic warfare has become hyper low interest rates and, thus, extremely cheap money for large institutions vis-à-vis the controversial reign of QE – quantitative easing.
Now, the how-low-can-you-go climate has created negative interest rates, meaning not only that many investments carry no return but that many deposits cost money.
Well-known Citigroup economist William Buiter says the solution to this backwards market is to reign in the appeal of normal currencies like cash – because it is “causing problems” for central bank manipulation:’
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 — 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.
Read more: http://www.shtfplan.com/headline-news/expert-says-banning-cash-the-only-solution-to-negative-interest-market-problems_04172015
Citi Economist Says It Might Be Time to Abolish Cash
http://www.bloomberg.com/news/articles/2015-04-10/citi-economist-says-it-might-be-time-to-abolish-cash