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Even My Kids Are Being Shafted By Low Interest Rates

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Just had a letter from Virgin saying the interest rate on their little rock saver is dropping from 3% to 2%. F*** me, even a 3yr old and a 6 month old are being f****d over.

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Ironic that the name is Virgin. All of their savers (myself included) are getting screwed with the paltry interest rates.

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There is an eggspert here with a cracking idea. He wants to abolish cash so TPTB can introduce negative interest rates.

Paying a negative interest rate on currency, or on electronic reserves at the central bank, may seem barbaric to some. But it is arguably no more barbaric than inflation, which similarly reduces the real purchasing power of currency. http://ftalphaville.ft.com/2014/05/20/1856082/rogoff-on-negative-rates-paper-currency-and-bitcoin/

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The ECB is about to cut the base rate from 0.25% and negative rates being talked about for its deposit rate. More debt needed to avoid deflation (in Europe) apparently.

We have the same problem here as well with inflation being too low. Good job we do not include property prices in any of the inflation indices or we would have rampant out of control inflation.

Dave and Mark have told us that the economy is strong, the banks will be nice to everyone while work for a fair society and world peace, inflation is pretty much under control, unemployment is way down, employment is up, there is no property bubble, but we still need the 0.5% interest rates and various schemes to help rich people buy property. Got to keep spinning ... just 11 months to go.

The problem is that the global savings rate is over 25%. There is just too much saving going on with respect to the needs of capital.

It is harming our economies and sending the world into depression.

so one way or another the excess has to be wiped out.

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The problem is that the global savings rate is over 25%. There is just too much saving going on with respect to the needs of capital.

It is harming our economies and sending the world into depression.

so one way or another the excess has to be wiped out.

:rolleyes:

Savings, versus all the massive massive private and public balance sheet debt, and hyperinflated over-valued assets.

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There will be negative deposit rates. First with deposits confiscations a la Cyprus then actual -ve rates but I suspect Base Rate will bottom at 0%.

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There will be negative deposit rates. First with deposits confiscations a la Cyprus then actual -ve rates but I suspect Base Rate will bottom at 0%.

Then they will start to confiscate your land and buildings.

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The problem is that the global savings rate is over 25%. There is just too much saving going on with respect to the needs of capital.

It is harming our economies and sending the world into depression.

so one way or another the excess has to be wiped out.

+1

Real wages need to rise, and China needs to consume more, else capital needs to be wiped out on a pretty grand scale.

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:rolleyes:

Savings, versus all the massive massive private and public balance sheet debt, and hyperinflated over-valued assets.

That's what constitutes 'savings'.

You want lower house prices don't you?

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I see Draghi is getting pretty desperate...those Europerans will not spend and just keep savings. According to the Sunday Times with the entire continent plunging into deflation time for giving those savers a good head kicking....negative interest rates. Meanwhile London offers a good way of off loading the world's savings very quickly.....small flats for millions of pounds.

Edited by crashmonitor

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........people only save to help provide themselves with an income in the future when they fall on bad times or when they are no longer able to provide an income for themselves...helping to become self-reliant/ independent.....if the the new way of living is to earn and spend it all, then borrow as much as possible to be spent today, now...so be it.....the powerful and the money lenders will then be in an even better position to enslave the dependent debt collectors, that will then have to beg for their bread. ;)

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The extra saving is going into the wrong assets.It should be flowing into India mainly but also other Asian countries.There it would see a real return over time as they grow.Instead people are putting their savings in an asset class almost certain to fall heavily.Western houses.

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What needs to change is for real cash savings made from working, investing in innovation, creating viable businesses to increase over and above inflation.....and for property, rent, land income to be earning well below inflation rates......and taxed relatively and accordingly.

The tables have to turn, or else why bother lifting a finger all will be provided with little or no effort or inclination. ;)

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