You should get a job on TV ,you tow the company line so well.
If you can't see ,that low rates IS the problem. What is low rates fixing! Its not creating inflation, it cant, it only creates deflation! If you give cash into any part of the system they will hoard until rates rise(unless they are Daft)
Until you can see this you are brainwashed my friend!
Looking at properties here this weekend... A nicely located 8+ bedroom commercial property with a swimming pool would just be perfect as a retirement income. Going to look along the coast around Sitges.
"02Last thing.Banks with trillions stuck in savings accounts , is exactly what we need. Do you honestly believe your deposit is sitting in their safe????(hint=maybe they loan it out??)"
Its great that banks have reserves but as has been well documented they are not lending. Not only that but no one is borrowing. No one is borrowing because no one is spending. No one is spending because everyone is saving( or paying down debt) Everyone is saving because prices are dropping. Deflation.
It was late when you wrote this post so read it again this morning allmoyne. Its the perfect definition of deflation. As prices drop people don't spend. They hoard, in anticipation of prices falling further. The net result is a self fulfilling prophecy of downward prices. Businesses struggle and close. Staff are laid off. Even less money in the economy and the downward spiarl continues.
What central banks all over the world are doing is attempting to replace the hoarded money with new money. They print it and flow it into the economy in an effort to stabilise prices. When the hoarders see the price of goods getting that little bit more expensive they open the purse strings and spend. You then have a productive economy again and qe is withdrawn (slowly).
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