RBA rate cut down to 0.5%

BuggedOut said:
They need to ban cash first and THEN it will be appropriate.
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Even if there was a cash ban, they still wouldn't want to go negative. They would prefer to just pump money into the system.

Also negative rate are a relative term. If the bank charged you -1% interest while there is 2% deflation in the economy, then you're really getting +1% interest.
Likewise if you are getting +2% interest in the bank while inflation was 3%, then you're really getting -1% interest.
 
Yes, the great irony is that negative interest rates are a lesser evil compared to money printing.

At least it's a more level playing field.
 
mmm....shiney! said:
Just thought you should be aware of that before you take heed of the morons who claim we’ll see negative rates in Australia.
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I don't know,either he---but you can't excluded for sure like anything else in life...
Edit; not everyone who has different opinion is a moron...
 
C'mon shiney, you're better than that.
Why is Australia so unique / special and when have we ever NOT followed overseas policy trends?

This is from a year ago and also well before current events have dented economic activity / confidence. Believing it is possible here and that our bankers might be lying or wrong is a rational view and is totally evidence based.


NegRates.png

You may be 99% sure, and thats fine. But ad-hominem name calling is not necessary.
 
I’ve already explained my thinking here and in other threads.

As far as ad hominem name calling goes well it’s not. It’s abuse. And there are a lot of goldbugs who are morons because they cling to an outdated view of what constitutes money when the reality is that humans evolve.

Edit to add: @BuggedOut if you want to believe that the RBA will go all ZIRPY then that’s fine. But the big move is not monetary but fiscal policy. That’s what will impoverish the morons.
 
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Australia is different to most of those countries on the list. We are a sovereign nation in command of our own monetary policy.

BuggedOut said:
Believing it is possible here and that our bankers might be lying or wrong is a rational view and is totally evidence based.
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There is no evidence that the RBA will go ZIRPY. There is evidence that they won’t go ZIRPY.
 
I’m still getting more than 2% for my savings deposit but I don’t expect to get much more than 1% this time next year.
 
bubblebobble2 said:
AUD is going up, why?!
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Q4 GDP numbers were a lot better than forecast, 0.5% growth for Q4 compared to the forecasts 0.3%. Which lead to the annual GDP coming in at 2.2%, beating the 2% forecast.

It won’t be until this year’s Q1 numbers that the effects of the bushfires and the corona virus will start to bite, and show in the GDP figures.
 
mmm....shiney! said:
I’m 99% certain that we won’t see negative rates.
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That's only your view- if you are happy with 99% that's fine -your call...? Nothing is certain in life if you are able to look outside the box-and this 100% rational view even if you are don't agree...

mmm....shiney! said:
The morons are the ones who have no rational basis for their views. Goldbugs are often guilty of being irrational.
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Thank you for explaining in details the meaning moron. You view in your belief is rational-some others view you don't agree are irrational-therefore these persons can be call moron.. This way of thinking is related to big EGO-very well documented in literature...

mmm....shiney! said:
Australia is different to most of those countries on the list. We are a sovereign nation in command of our own monetary policy.
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Why do you think Australia is more sovereign than Switzerland or some others countries..?
 
madaw1 said:
That's only your view- if you are happy with 99% that's fine -your call...? Nothing is certain in life if you are able to look outside the box-and this 100% rational view even if you are don't agree...
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Using that line of logic you can argue that Jesus Christ was real. There are plenty of certainties in life. There is nothing rational about either a belief in God or a belief that the RBA will introduce negative rates because there is no evidence to support either belief.

What evidence do you have that the RBA will introduce negative rates?

madaw1 said:
Why do you think Australia is more sovereign than Switzerland or some others countries..?
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Lol, I love it when people cherry pick. Not. What a waste of bandwidth. o_O

This is what I wrote:

"Australia is different to most of those countries on the list. We are a sovereign nation in command of our own monetary policy."

I'll leave you to your game of confirmation bias.
 
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mmm....shiney! said:
Lol, I love it when people cherry pick. Not. What a waste of bandwidth. o_O

This is what I wrote:

"Australia is different to most of those countries on the list. We are a sovereign nation in command of our own monetary policy."

I'll leave you to your game of confirmation bias.
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You will love this-how do I know-because of human ego. Yes- there was not cherry pick,but simple Typo on my side-I was rushing to fast in reading the post and have mixed the sentence. I have no problem whatsoever to admitting to mistake,so there is no waste of any bandwidth...:cool:
 
mmm....shiney! said:
Using that line of logic you can argue that Jesus Christ was real. There are plenty of certainties in life. There is nothing rational about either a belief in God or a belief that the RBA will introduce negative rates because there is no evidence to support either belief.

What evidence do you have that the RBA will introduce negative rates?
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I'll provide you answer to that tomorrow as it's now to late.../
 
madaw1 said:
I'll provide you answer to that tomorrow as it's now to late.../
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@madaw1 I admit I'm being overly brutal about your's and @BuggedOut's opinion regarding negative rates. The reason is that there is so much misinformation being pushed by both alternative news sites/influencers and mainstream news sites/influencers that is misleading, either because they don't understand how the modern monetary system operates, or they're deliberately misrepresenting possibilities for their own gain. The point I'm trying to drive home is that this misinformation can lead us into making poor decisions or non-optimal decisions because our eyes are fixed on the wrong part of the economic horizon, particularly for those new to the PM market. Now I'm not accusing you guys of being naive not malicious, just acknowledging that experience helps, and no doubt you guys are well versed in the PM market anyway. I was once a naive PM bull and the experience I've gained has come at a fair opportunity cost to me and my partner. I'd prefer others to tread more cautiously than I did.

For example if we take the debate on interest rates, central banks across the world are reassessing the effectiveness of unconventional monetary policy. The RBA (and it's not alone) has acknowledged that it has learnt from the experiences of other central banks when it comes to the tools it could employ at its disposal. Interest rate cuts are just one of them. Lowe has stated that out of the 4 monetary policy tools available and on the RBA's agenda, only two are being considered, namely forward guidance and asset purchases (the purchase of government debt). NIRP is not. Lending operations is not. Furthermore, Lowe indicated a specific cash rate at which he expects the government to step in with fiscal policy stimulus - 0.25%.

What does this all mean? It means that there may well be an opportunity that long before the RBA goes ZIRPy, for investors to profit from what potentially could be an environment of asset inflation ie stock market and real estate price rises. Expecting the RBA to adopt a NIRP has the potential for an investor to miss out on gains in assets because his or her focus is on the wrong economic indicators.

Forget NIRP, watch the State's space.

I'll post an update to this thread: https://www.silverstackers.com/forums/index.php?threads/rba-governor’s-speech-26-11-19.93974/ later in the day as well.
 
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