Thursday, Feb 11, 2016

The Riksbank elected to cut its policy rate from minus 0.35pc to minus 0.5pc on Thursday.

Telegraph: Sweden takes negative interest rates even lower as Riksbank fights to keep up with global stimulus

So, Sweden is actually working hard to keep consumer prices high. Who again do they work for?! Maybe countries with strong currencies should attempt to build stuff for local people and sell it to them if they are allowed to become more wealthy with a stronger currency? Regardless, this is a #longtermdeflationarytrend - and no amount of monetary policy will change it, so just deal with stronger currency, which has pro's and cons and is not all bad.

Posted by libertas @ 11:49 AM (2397 views) Add Comment

7 Comments

1. Smiley said...

It's only a deflationary trend because they haven't got the guts to print money and give it away to normal people (thus boosting consumer prices), but instead insist on boosting asset prices by limiting monetary policy to interest rates.

Thursday, February 11, 2016 01:25PM Report Comment
 

2. libertas said...

No, we have a deflationary trend because a generation of computing, robotics and associated liberalisation are actually starting to cause falling prices, but governments cannot maintain the national debt unless we have negative rates and so this is the market leading the world into an orderly sovereign debt default where the national debt becomes an income yielding asset that governments will have to utilise to stimulate growth by cutting taxes, with over taxation being part of the deflation problem.

Thursday, February 11, 2016 11:01PM Report Comment
 

3. libertas said...

UK 2yr bonds now down to 0.3% on the marketplace. Could go negative any time soon putting major pressure on BOE to cut rates.

Thursday, February 11, 2016 11:02PM Report Comment
 

4. libertas said...

Swedish Krona is braking out against the Euro. This is their panic:

http://uk.investing.com/currencies/eur-sek

Thursday, February 11, 2016 11:04PM Report Comment
 

5. Kev-all-in said...

once upon a time these comments used to be a place for lively and interesting discussions .....
......then libby came along and spoilt it for everyone.

Instead of trolling these news stories why don't you just start a thread on the board and then people who want to hear or respond to your rambling boring boasts can - and those who don't can easily avoid them.

Is it really too much to ask? thanks.

Saturday, February 13, 2016 12:39AM Report Comment
 

6. mister ed said...

@2

"No, we have a deflationary trend because a generation of computing, robotics and associated liberalisation are actually starting to cause falling prices"

But not in unproductive assets like housing, the prices of which, frankly, will go to the moon and beyond.

Tuesday, February 16, 2016 01:57PM Report Comment
 

7. This comment has been removed as it was found to be in breach of our Blog Policies.

 

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