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13326782 No.13326782 [Reply] [Original]

could someone redpill me on zero interest rates. keeps employment high, less companies go bancrupt, homes will be build.
why not keep it that way?

>> No.13326841

>Let somebody borrow my money
>He might not give it back
>Do it anyway because he pays me interest, to make it worth the risk

>Interest rate is 0%
>Don't let somebody borrow my money because there is no incentive for me to take that risk

>> No.13326883

>>13326782
hi I would like my life savings and pensions/investments to be raped by inflation

>> No.13326896

inflation

>> No.13326899
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13326899

>>13326782
"I'm so much more charismatic and confident when I'm drunk, why not drink a shot every hour so I can stay drunk forever?"

"Maybe I should use caffeine pills to stay awake for 20 hours a day every day, and that way I can get 4 more hours of work done every day!"

Keeping interest rates low forever is analogous to the above.

>> No.13326903

>>13326782
People with garbage ideas and no impulse control end up taking money (claims on wealth), spending the money on dumb shit (claiming wealth), and generating no positive return (squandering wealth).

Interest rates are meant to act as a brake on that.

>> No.13326911

do you keep your life savings in cash? >>13326896
>>13326883

>> No.13326975

>>13326911
>store money in the bank
>no interest to combat inflation

>> No.13326987

>>13326911
> thinks low/zero interest rates only effect cash returns

>> No.13327078

cash / fiat money, why dont you invest your life savings in the stockmarket and gain dividends instead of interest rate.

>> No.13327117

>>13326899

This anon nailed it

>> No.13327243

>>13326841
it doesn't work that way you dolt. central bank interest rates are not low because banks profit from the spread between what they borrow at and lend out. There's so much outstanding debt in the system that if rates rise even a little bit, those spreads disappear and the banks go tits up