[KarlInOhio]

Many years ago I heard a banker from the Fed being interviewed about his plan for expiring currency to keep people from just holding onto money. This was before the internet was popular, so I called up his office to complain. His secretary took a message and he sent me a nice letter with his full paper describing how the Fed might handle a period of negative interest rates. I guess he took a lot of heat about his idea and he was sending out the letters to calm people down. His cover letter stated that it was a possible contigency plan for something unthinkable like massive deflation during a recession causing people to just sit on their cash (not even in banks), but he never expected it to really happen because rates that low were generally inflationary. (I think I have that right from a more than ten year old memory.)

I wonder if now is the unthinkable situation he was considering. If even 0.25% rates can't get inflation moving like they desparately want, will they start doing crazy things soon?

[Admiral_Ritt]

This is what they do (did) in vietnam. The commie types
didn’t like owners to hoard cash to capitalize and grow
so there were notes that would expire. So no one could be
rich for very long.

This Fed thing is a re-enactment of Japan in the 90’s
They Also Tried Stimulus spending sapping their reserves until they are now a big debtor country. (remember how unbeatable Japan seemed with all that land value) why they could buy california.

I am going to take my best advice, gona go buy gold coins
of 1 oz and 1/10 oz. I am pretty sure if things get bad
enough it will be illegal to buy gold. Their reasoning being is that it ties up capital and accelerates the economic downturn.)

so my liquid positions will be 50% Cash & 50% Gold Coins
that way I am covered either way