Home Finance Lowering Interest Rates — Stimulating or Sagging the Economy?

Lowering Interest Rates — Stimulating or Sagging the Economy?

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On Sunday I put a camera in front of Greg Buck. In this video, Greg questions whether the lowering of interest rates — which is meant to stimulate the economy — might be doing the opposite, and actually depressing the economy. He explains how cheap money keeps “zombie” companies alive, keeping new companies from entering the market. Dee McLachlan

The extract below is from an article in globalresearch

The Real Reason the ECB Has Gone to Negative Interest Rates

…After noting that negative interest rates have not proved to be beneficial for any economy in which they are currently in operation and have had seriously destructive side effects for the people and the banks, he said:

However, negative interest rates as follow-up and addition to massive QE were effective in keeping the Eurozone glued together because they allowed countries to stay afloat that cannot, but would need to, print their own money to stay afloat. They did so by making funding plentiful and nearly free, or free, or more than free…

EU member governments have lost the sovereign power to issue their own money or borrow money issued by their own central banks… The rules changed after Greece and other southern European countries got into serious trouble, sending bond yields (nominal interest rates) through the roof. But default or debt restructuring was not considered an option; and in 2016, new EU rules required a “bail in” before a government could bail out its failing banks.

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11 COMMENTS

  1. I dunno but having massive amounts of immigration certainly hasn’t helped to keep house prices reasonable. In fact, as immigration has doubled our population over the last 25 years or so, are house values twice as high as they should be? As the baby boomer genration starts dying out, there should a glut of available housing, so prices should be coming down to an extent (simple supply and demand)

    Often we pull down housing that is alright, just to put 2 or more in its place.
    So just think: you are paying twice the price for a house that you should be if we didn’t engage in massive immigration. Don’t forget the interest you pay on your mortgage will triple (at least) what you borrowed originally. So if a house would have been $100,000 under our current immigration it has increased to $200,000 and after finally paying interest you have paiud over $600,000 for a house that was only really supposed to be worth $100,000.

    Just think of how mucvh better it would be for the economy if you have an extra $300,000 to spend.
    If usury was illegal (like it is under christianity and Islam) then there would be an extra $500,000 into the economy.

    Let us not mention the fact that there are so many more taxes now (and levies, surcharges, stamp duties), than there used to be a generation ago. Let us not mention the change from Sales Tax to the GST, which resulted in untolds billions extra above what was predicted (and that some taxes were supposed to be removed with the GST introduction). Let us not mention Privatisation which has resulted in massive increases in basic neccessities like electricity. Let us not mention banking fees that never used to exist.

    Don’t forget all those new socialist programs that have to be funded by the taxpayer, or the corporate welfare, the way (one sided) lobbyists influence government policy, UN influence, being told to go to war against another country, massive security costs due to us welcoming terrorists into our country because planet earth is one big happy family!, our goverment apologising for Australia being prosperous…someone better take my keyboard!

    • Great deception has evolved into the great replacement.
      International crime syndicates placed in all positions of influence !
      It was all stitched up here, even before the olympics., to destroy the Oz middle majority.
      Sydney is the launching pad for the global satanic communist new world disorder.

  2. At morningstaronline.co.uk, Lee Brown offers this info re Ecuador:

    ANYONE observing events in Ecuador in recent days could be forgiven for thinking they had been transported back to the Latin America of the 1990s.

    The mass demonstrations under way in Ecuador follow new attacks on living standards designed to meet the terms of a multibillion-dollar IMF loan. The immediate spark to the huge street protests was the removal of subsidies on fuel that affects not only transport costs but drives up food prices.
    Faced with a backlash to these elite-friendly measures,

    Ecuador’s President Lenin Moreno decreed a state of emergency that suspends the constitution for 60 days, removes the right to free assembly, allows for the censoring of the media and employs the armed forces to maintain order.

  3. Over at investmentvwatch is a report that 900,000 customers of a Indian bank, PNCBANK in the Punjub are limited to 100 per day.
    Not happy Narandra!!

  4. Why not have a national bank printing it’s own money, charge it flat at 10% and collect that profit as the only tax? It’s still usury though. Ideally, as Lincoln and Kennedy proposed, lend it debt free cause they make it from nothing anyway. A system with no usury, people within their own nations, living on a level playing field where genuine skills are priority for goodness.

      • Mary,
        You’re joke is hilarious. I would be way out of depth in that world of bribes greed and absolute corruption. Reason, no experience.
        I’m a simple old school carpenter, sixty one years , used up like a worn out old pro.
        Haven’t had a formaldehyde sucking gig for six months, in times of the biggest building boom in this city’s history. I did what I could with what was at hand. Look at this place now, our elite sucking up to the ccp and syndicates similar.
        We live in hope that it be better cause these are “strange days indeed”.

  5. Those who follow the X22 reports will have noted one of today’s reports.
    Basically the plan is and has been, to bring down the central bank ponzi scheme running since the creation of the PRIVATE BANKERS FEDERAL RESERVE BANK IN 1913.
    They have been creating money for nothing and charging interest ever since.
    They are being compelled to print more till the chooks come home.
    Then it will be brought to a complete collapse.
    The dollar iou’s Will have to be replaced with a currency backed by genuine assets.
    Gold anyone?
    The usual solution of the bankers was war financed on all sides by the banker criminals.
    Ride it out or get your rifle.

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