
Upside-Down World of Negative Rates Is Coming for U.S. Savers - spking
https://finance.yahoo.com/news/upside-down-world-negative-rates-100000573.html
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thorwasdfasdf
>> "For instance, German household savings have jumped to 11.2% of income, the
highest in over a decade, and savings rates in Denmark and Sweden are near
all-time highs."

Of course people are saving very aggressively. With rates going lower and
lower, it means, you need to hunker down and cut your spending as much as
possible because your retirement money isn't going to grow, at all, it's
decreasing.

With every step interest rate goes lower, their just putting another nail in
the coffin. The whole world is drunk on keynesian economics and it's not
working, one bit.

What goes around, comes around. if you turn the screws on people and continue
to hurt them financially, they'll have less and less money to spend, and it
keeps making the economy even worse.

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anthony_romeo
Keynesianism only works (in theory) if an economy pumps the breaks a bit
during the good times. Failure to do that isn’t really Keynesian, and the US
has done nothing but hit the gas during the past few years of growth.

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kmonsen
This is my problem with Keynesian economics. It is obviously correct, but it
cannot be done in practise.

Two issues:

\- How do we identify good times? EU would for sure said we have not had them
since the last crisis.

\- How do we get humans to save in good times. Not regular people but
politicians that wants to get reelected more than anything else

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Retric
> How do we identify good times

By looking at the employment rate, not the meaningless unemployment rate
numbers. [https://tradingeconomics.com/united-states/employment-
rate](https://tradingeconomics.com/united-states/employment-rate)

> How do we get humans to save in good times.

By electing people that save responsibility. Post WWII the US paid down huge
amounts of debt. Now it seems like Republicans want to loot the place whenever
they get power and Democrats are willing to trade spending for more spending.

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throwanem
If this happens, how does an ordinary someone, with a solid buffer in a
regular savings account, protect the value of that buffer?

That's an investment in financial stability, with returns valued in peace of
mind rather than dollars. I'm not rich enough or reckless enough to qualify
for a bailout. So how do I protect myself?

~~~
Invictus0
You can still get a decent 1.85% 12 month CD with Marcus.

~~~
thorwasdfasdf
That's going away soon. so better get in quick. If they hold ZIRP as long as
they did last time, it'll be a very long time before we see rates go back up
again.

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virmundi
Does this act as the catalyst for American and the EU embracing communism? If
we are wiping out assets, will the people want to centralize wealth into the
works hands?

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KWxIUElW8Xt0tD9
gold

