You can make wrong decision when the interest is +0.25% instead of -0.5% as well if don't know what are you doing....
He’s made it clear that 0.25% is the effective ZLB. Now you can use that information to your advantage, or you could assume that the RBA will go into negative rates. That’s up to you.
Any information from different sources ,from Reserve Bank Boss,from SilverStackers and even from you are very valuable,but they have to be adjust according to experience in life and your awareness-I didn't say knowledge on purpose-as if you are not aware what's going on around you-the knowledge is fruitless....
The US Federal Reserve cuts interest rates Tuesday in a rare emergency meeting, responding aggressively to the growing threat the coronavirus poses to the economy and markets. The Fed lowered its key federal fund rates by half a percentage point to a range of 1% to 1.25%, the central bank said in a statement.
Damn, it's at this point we realise how silly it was to make our fiat out of plastic. At least if it was made of paper we could use it as TP.
If by your experience in life you are referring to the fact that negative rates have been implemented overseas, then you should be aware that the RBA has acknowledged that and has clearly stated that such a course of policy would not be appropriate for Australia. Rather, Lowe has made it clear that the RBA’s unconventional monetary policy has just about been exhausted and that he expects fiscal policy programs to go into effect. Just thought you should be aware of that before you take heed of the morons who claim we’ll see negative rates in Australia.
You are correct. They need to ban cash first and THEN it will be appropriate. But maybe if the public doesn't mind the money printing and enough of it is dropped from helicopters they won't need to.
Correct bugged out, cash ban first and or make anyone that uses cash an alien, from business to your lunch. Then helicopter money can be implemented. I shouted the guys coffee this morning and had the card machine shoved in my face to pay via tap pass, I got a dirty look when I pulled out $20 to pay... Any one else notice tellers always assume that you will pay everything via tap pass. Timmy
As Richard Koo points out, the biggest impediment to effective fiscal policy stimulus is democracy. The helicopter drops will be welcomed by some and held in contempt by others. Politicians being politicians, and history is a good guide here according to Koo, fold under public pressure and never follow completely through with fiscal policy changes. The result is that you just get meaningless cash splashes of no real benefit.
The idea that the government needs to firstly ban cash before implementing fiscal policy stimulus or the RBA begins pursuing further unconventional monetary policy is a fallacy.
Yes, all the time. I went to my local corner store yesterday, and the cashier did the same out of sheer habit I suppose. I had a $20 to give him, and he was actually pleasantly surprised. He said “oh, cash! Thats great!”. Just imagine how it’ll be for the next generation!
