Posted on 05/03/2016 7:50:57 AM PDT by Lorianne
Helicopter money may be on the horizon, but if Deutsche Bank has its way, there is at least one intermediate step.
According to DB's Dominic Konstam, now that the benefits QE "have run their course", it is time for the next, and far more drastic step: "the ECB and BoJ should move more strongly toward penalizing savings via negative retail deposit rates or perhaps wealth taxes. With this stick would also come a carrot – for example, negative mortgage rates."
(Excerpt) Read more at zerohedge.com ...
That carrot is no carrot if you paid cash for a house
Looks like they will do anything to prop up the falling housing market
Except for my house, I’ve stayed out of the real estate market. I might have to buy some income producing property if I could finance it with a negative interest rate.
Or look at it another way, socialism is slowly running out of other peoples money. And now the governments will take it from wherever it can.
As always thank you for starting an important thread.
There is another solution that is not mentioned. Slow down the growth of government spending at all levels, immediate eliminate deficits in federal budgets in Europe (and the US)
and actually begin to pay down the debt. Instead of trying to destroy small savers, slow down the growth in the money supply and bring back a saving rate on savings accounts of about 3%.
Oh, and stop all government policies that reduce economic growth of real GDP to just above 1% or just below -1%.
Insanity.
What the Hell are you talking about. If you paid cash for a house and rates go negative, you take out a loan.
There are plenty of tax free investments that pay 2 to 4% interest. If rates go down, the principal value goes up.
It’s the people trying to amass enough cash to be independently wealthy that will have a tough time finding am investment path.
“There is another solution that is not mentioned. Slow down the growth of government spending at all levels, immediate eliminate deficits in federal budgets in Europe (and the US)
and actually begin to pay down the debt.”
The GOP Congress doesn’t even have the stones to flat line the federal budget, much less make real cuts.
Taxing wealth means taking a percentage of savings each year. They start with 1%. Not a tax on interest. Not a tax on earnings. A tax on the amount that is in an account. Your life savings. You worked for that. You already paid taxes on it.
When 0 hears of it he’ll be sure to want it for the USA.
Anarchist /s
1) Reductions in savings leads to reduction of the demand for labor by business firms in comparison with what it would otherwise have been, and thus either the wage rates or the volume of employment that business firms can offer or both. For it deprives business firms of the funds with which to pay wages.
2) By the same token it deprives business firms of the funds with which to by capital goods.
3) In addition, it reduces the degree of capital intensiveness in the economic system and thus its ability to implement technological advances.
All of these together powerfully reduces the incentive to introduce new and better products and improve methods of production. They also undermine capital accumulation and the rise in the productivity of labor and real wage rates and thus the standard of living of everyone.
Lets see if these thieves can tax my precious metal or cryptocurrencies. They could tax the metals if one were to transact with them. However, there is NO way that they can tax my cryptocurrencies, transacting or not, especially when z.cash goes live this summer.
Bad governments with their endless money printing and ever-increasing taxes are the "Killer Apps" for cryptocurrencies.
And people wonder who the Romans were hiding money from when they buried their money.
LOL How true!!
Now that the big boys are all fattened up on cheap cash, the government is going to come in and take it all away from them as a "wealth tax"?
You reap what you sow, boys. You reap what you sow......
If they start charging me to USE our savings I’ll pull every darn dime out and keep cash. That’s ridiculous. They never ever stop.
Cash in the mattress, gold in the ground, guns by every door and window, soup lines everywhere, and politicians insulting the citizens for complaining. Ain’t socialism grand?
“The GOP Congress doesn’t even have the stones to flat line the federal budget, much less make real cuts.”
You are 100% correct. I still remember Bob Dole in the mid 1990’s when asked about cutting the federal budget, said it was not going to happen.
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