Posted on 03/20/2016 5:41:02 PM PDT by Lorianne
The world economy would be worse off without negative interest rates, according to International Monetary Fund Managing Director Christine Lagarde.
Negative rates in Europe and Japan have helped support global growth and price gains, she said in an interview in Ho Chi Minh City on Friday. The finance sector may need to implement new business models as a result, she said.
“If we had not had those negative rates, we would be in a much worse place today, with inflation probably lower than where it is, with growth probably lower than where we have it,” Lagarde said. “It was a good thing to actually implement those negative rates under the current circumstances.”
Central banks in Europe and Japan have deployed negative interest rates to stimulate the economy, and Federal Reserve Chair Janet Yellen said the U.S. central bank is taking a look at the tool “in the event that we needed to add accommodation.” The policy moves have triggered concerns that they could have unintentional consequences such as hurting bank profits.
Negative interest rates are a fairly new economic tool and more time is needed to assess the policy, Lagarde said.
China Growth “So let’s see whether it kick starts the process of fueling credit to the economy, changing the behavioral pattern of people and changing the strategy of banks as well,” she said. “It may be good for the economy — maybe not forever, but for a period of time.”
Separately, Lagarde said the IMF may raise its 6.3 percent growth forecast for China due to the nation’s planned economic reforms and stimulus. The figure could be raised “a little more” after an assessment of a recently announced economic package, she said.
(Excerpt) Read more at hellenicshippingnews.com ...
Well, gee, when the big-government/big-bank criminal-complex steals money from the peasants the big-government/big-bank economy improves!
Who knew?
Driving capital away from safety.
What could go wrong?
Remember that everything from these idiots is a lie. Act accordingly.
I can think of nothing more harmful to the American middle class who save-negative interest rates. You save $1000 and one year from now you get back $995. And if there is even 1 or 2% inflation the results are even worse. The $995 won’t buy as much than the year before if prices have gone up.
If we had not had those negative rates, we would be in a much worse place today,
Ever notice every wacky policy decision, be it from Central Banks or governments, always is justified with this line?
BS. The Globalists simply want to force people out of holding onto savings and gamble it in the markets. They also want to outlaw cash. The Antichrist is on the move.
Exactly
Bingo.
it really is a tiny house nation we live in
The elites f$&@ the peasants, then tell them it’s good for them.
If you count China's bubble economy and the related commodity bubble, then that is technically correct. But we also found out that it is not sustainable. Worse still, it hollows out the rest of the economy including our own. Finally she is measuring growth by including price increases that should be counted as inflation.
You are baffled by the counterintuitiveness of how the economy actually can be made to thrive by causing savings and investment disappear?
Sheesh! Stuck in the Dark Ages!
Theft.
Spoken by an unelected bureaucrat. She is evil.
In science, the cream rises to the top.
In politics, the turds do.
Lagarde is soooo fitting of the above truism.
Oh, climate research is politics.
And I guess all of us poor fools who put money aside for retirement can go pee up a rope.
Love is Hate; Ignorance is Strength. The world is just about ready for Doublethink.
a new approach to taxing the peasants, steal from their savings, yes, that is the answer, not only do we inflation destroying bank savings, but now we have negative interest rates
Lagarde is one of the globalist ringleaders. The imf is totally control obsessed and thoroughly infiltrated by the lbgt nazis. I believe, though some disagree with me, that lagarde is a transvestite.
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