Tuesday, July 16, 2019

Learn Economics Topic Twenty One

21.  Negative Interest Rates

Negative Rates, Climate Science, and a Fed Warning

Even if climate science does not prevail with its economic aspirations, the world faces increasing challenges to growth and normalization of interest rates.

BIS Explains Repo but There Is More With the Banks

Obviously, Trump woke up a sleeping giant with the banks. He is still calling for lower rates from the Fed, which actually has a responsibility to keep the banks solvent, squeezing the Fed.

Negative Interest Rates and Why Banks Want Fannie and Freddie

As of now, the market monetarist wish for the US Fed, to charge interest on excess reserves, rather than pay it out, would likely not push interest rates in the interbank lending market up as hoped.

Summers and Roubini Talk Negative Interest Rates, Sound Logic But Uncharted Waters

Negative interest rates may be the only way to help the economy in the next downturn. And negative interest rates make treasury bonds look ugly to retired guys but pretty to Wall Street as collateral for derivatives deals. Economists are madmen..

MM Boys and Tight Money. Market Monetarist Terms Listed for You

A list of terms relating to Market Monetarist positions is provided here. What is it they want the Fed to do? It is certainly more than what is being done now. And it is controversial.

Clearing Up Negative Interest Rate Confusion. Kocherlakota Weighs In

Confusion exists in many articles about negative interest rates. I try to simplify and clear up the differences in the application of rates based on different economists' views.


Articles are exclusive to Talkmarkets if they are published on the site before being published elsewhere for 48 hours. Most of my articles on Talkmarkets are written to be considered "evergreen", or intended to be fresh articles even as time passes. Most subjects I have written about have proven to lend themselves to considerable lasting effect.

While I have supported some economic policy, it turns out that racism was a strong motivator for some of those policies. I oppose racism in all forms and prove my commitment by rejecting anything other than the Westphalia or Westfalia view of sovereignty, which is mutual respect for all nations by all other nations. 

Perverse sovereignty is as bad or even worse than excesses in globalization which gives banks power over governments. Both are ultimately bad for America. This blogger supports free trade and opposes a border tax. But government should be stronger in order to rein in big banks who abuse the people with toxic loans.

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