ZIRP - References and thoughts please

Discussion in 'Markets & Economies' started by AngloSaxon, Jan 7, 2013.

  1. AngloSaxon

    AngloSaxon Active Member

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    I'd like to know more about ZIRP - Zero Interest Rate Policy.

    Given it is effectively the de rigueur in both the USA and UK and looks like where we may be going in Australia, it's going to do a lot of damage. At the small end where self funded retirees who can now no longer live off their investment interest.

    But especially to the big end where banks and insurance companies etc move into even more off balance sheet items like REPOs/repurchase arrangements and leveraging arrangements of over 30 times their assets.

    I watched that Ann Bernhardt video the other day, all 2 hours of it and she made a big deal on repurchase arrangements, and I keep seeing people reference 'ZIRP' here on SS. Not much comes up in the Search function for ZIRP. Does anyone have any good references, either written or on Youtube?
     
  2. JulieW

    JulieW Well-Known Member Silver Stacker

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  3. southerncross

    southerncross Well-Known Member Silver Stacker

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    It is the end of the road, the current effect on those who actually saved for the future having the rug pulled out from under them, savings meaning nothing and retirement investments for a whole generation achieving SFA.

    http://apocalypse2010.blogspot.com.au/2012/02/why-economy-must-collapse-zirp-0.html


    http://heartland.org/policy-documents/research-commentary-zero-interest-rate-policy

    Zero interest is Zero earnings for the people who actually save fiat in banks, invest it for retirement or stash it away in a mattress for old age. It is a slow fuck for people who have a dedicated portion of their life long savings put aside in order to take care of themselves in old age, The inevitable outcome is more people becoming reliant upon govt support, an eventual rise in interest rates (after people have lost everything) and eventual hyperinflation due to a dilution of the dollar value.

    Truth is stranger than fiction.
     
  4. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    ZIRP= Keynesian end point.

    Once there...there's no way out. You can try to Inflate or Default your way out... but inevitably, one leads to the other.
     
  5. hawkeye

    hawkeye New Member Silver Stacker

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    It's a way for the govt and banks to siphon even more money out of society to keep their own balance sheets stable and avoid going bankrupt.
     
  6. AngloSaxon

    AngloSaxon Active Member

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    Thanks for the refenences. Unfortunately it is past 3.30am so I'll read them tomorrow :)

    Keep them coming if you find them!
     

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