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The Disaster of Negative Interest Rates

Originally published at http://www.commondreams.org/views/2019/09/30/disaster-negative-interest-rates

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The ECB will prove to be a disaster for the Countries of Europe as without control over their own Money supplies , individual economies are at the mercy of Bankers.

There has long been talk of abandoning the Peso and Canadian Dollar under the NAFTA treaty and using one currency. This too would be a disaster. Canada needs to maintain control over its own economy.

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Leaving aside the feint toward MMT at the beginning and the main point of the article (sorry)–central bank financing of govt expenditure–the missing piece here is the fiscal side. What is needed is a massive expansion of federal spending through congressional appropriation, which is impossible under current conditions with austerity Republicans and neoliberal Democrats in charge. The crisis of capitalism is more serious than what central banks can deal with. Unless congress changes, the crisis will deepen and produce incredible shocks to the financial institutions and real economy.

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On the fiscal end, Congress puts a lot of eggs in the military spending basket.

Not the best bang for the buck. Pun not intended.

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Plus the huge tax cuts fuel massive stock buybacks instead of productive capital spending and wages/consumption.

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“If what Trump wants is cheap borrowing rates for the U.S. federal government…”

No. What Trump want is cheap borrowing rates for Trump, Inc.
Whatever he wants, is always what he thinks best for himself, solely.

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I have a better idea than negative interest rates. Forgive student debt.

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Hi SkepticTank:
Are Congress people allowed to invest in military type of investments? I am wondering because it must be true as so many in Congress seem to vote for whatever the military wants. It would seem that denying Congress from investing in this would be a necessary ethical consideration.

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Congresscritters indeed serially benefit from insider information that enables them to make big money investments including lucrative military industrial media infotainment complex (MIMIC) investments.

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There are laws meant to curb insider trading by members of Congress. Financial disclosure rules, for instance, and a rule that requires members to report stock trades within 45 days.

I’d call them minimal. I know that back ten years, investing in military contractors was rampant. And I also recall this article from 2011, which applies to this chat:

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Hi SkepticTank: sigh—",of the people, by the people FOR the corporations ! : (

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