tag:blogger.com,1999:blog-11906042.post6521779302448111825..comments2024-03-29T10:51:27.752+13:00Comments on Not PC: Treasury credibility [updated]Peter Cresswellhttp://www.blogger.com/profile/10699845031503699181noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-11906042.post-33989029329873660982009-07-03T11:58:10.244+12:002009-07-03T11:58:10.244+12:00How could there not be a run on the banks? Who in ...How could there not be a run on the banks? Who in their right mind would leave their money in when taking it out and stuffing it in the mattress would give a better return. Who would lend to the government when they promise to give back less than you lent them?twrnoreply@blogger.comtag:blogger.com,1999:blog-11906042.post-59874285241750384842009-07-03T11:12:56.127+12:002009-07-03T11:12:56.127+12:00Well spotted, Mark. That's great that Jamie W...Well spotted, Mark. That's great that Jamie Whyte has been studying Austrian Business Cycle Theory. Good man that.<br /><br />"<i>Or is that article taking the mickey? Surely no central bank is actually going to adopt a negative rates????</i>"<br /><br /><a href="http://pc.blogspot.com/2009/04/mankiw-turns-illiterate.html" rel="nofollow">Surely you jest?</a>Peter Cresswellhttps://www.blogger.com/profile/10699845031503699181noreply@blogger.comtag:blogger.com,1999:blog-11906042.post-86172131898409189102009-07-03T11:06:33.275+12:002009-07-03T11:06:33.275+12:00And another great link, regarding that social demo...And another great link, regarding that social democratic wet dream, Sweden:<br /><br />http://globaleconomicanalysis.blogspot.com/2009/07/sweden-cuts-deposit-rate-to-negative-25.html<br /><br />Quote:<br /><br />"There has been a lot of ludicrous recommendations recently to combat deflation by making deposit rates negative. I did not think any central bank would be dumb enough to try it. I thought wrong.<br /><br />Today, Riksbank, Sweeden's central bank cut the deposit rate to -0.25% effectively charging savers interest on deposited money.<br /><br />...<br /><br />The global economy is in a mess because of the lack of savings not because of an excess of it. People spent money they did not have, pushing asset prices to ridiculous levels. Banks, in belief that asset prices would keep rising exponentially, increased leverage. Now consumers everywhere are retrenching in the wake of the collapse, a much needed phenomenon.<br /><br />In light of the above, punishing savers with negative deposit rates is the height of stupidity.<br /><br />It would be fitting if there was an immediate run on deposits. And if that happens what will Sweden do? Halt deposits? Sweden risks (and deserves) a currency collapse and bank runs for this insane effort. Look for capital flight in Sweden.<br /><br />We should all be rooting for the demise of Sweden lest Bernanke or some other Central Bank clowns try the same thing. The risk is that Sweden does not immediately suffer for this stupidity and that Bernanke tries to do the same thing."<br /><br /><br /><br />Or is that article taking the mickey? Surely no central bank is actually going to adopt a negative rates????Unknownhttps://www.blogger.com/profile/07707604974739887751noreply@blogger.comtag:blogger.com,1999:blog-11906042.post-18591655927279068532009-07-03T10:09:46.365+12:002009-07-03T10:09:46.365+12:00Great, connected, article here:
http://www.timeso...Great, connected, article here:<br /><br />http://www.timesonline.co.uk/tol/comment/columnists/guest_contributors/article6619963.ece<br /><br />Strip the Bank of England of its power.Unknownhttps://www.blogger.com/profile/07707604974739887751noreply@blogger.com