1. Same story, different day...........year ie more of the same fiat floods the world
    Dismiss Notice
  2. There are no markets
    Dismiss Notice
  3. Week of 6/24/2017 Closing prices & Chg Over Last Wk---- Gold $1256.40 Silver $16.64 Oil $43.01 USD $96.94
  4. "Spreading the ideas of freedom loving people on matters regarding high finance, politics, constructionist Constitution, and mental masturbation of all types"
    Dismiss Notice

Trump's Federal Reserve Pick Hates Gold and Cash

Discussion in 'Coffee Shack (Daily News/Economy)' started by Silver, Dec 7, 2017 at 2:54 PM.



  1. Silver

    Silver Gold Member Gold Chaser

    Joined:
    Mar 31, 2010
    Messages:
    2,679
    Likes Received:
    2,942
    Trophy Points:
    113
    http://www.thedailybell.com/news-analysis/warning-trumps-federal-reserve-pick-hates-gold-and-cash/

    Warning: Trump’s Federal Reserve Pick Hates Gold and Cash
    By The Daily Bell Staff - December 07, 2017


    In case of emergency, you should always have a solid chunk of cash on hand. These days, that isn’t much riskier than keeping your money in a bank.

    There are stories of banks and governments suspending accounts for no legitimate reason. Furthermore, the interest rates at banks hardly give you much incentive to store your money there.

    But as with anything that gives individuals more control over their lives, the government doesn’t like it. They want the ultimate control to cut you off from your economic power.

    It’s bad enough that inflation robs you of the value of your money.

    But Trump’s newest pick for the Federal Reserve board of governors wants to go even further. Marvin Goodfriend thinks there should be a robust negative interest rate placed on cash.

    For example, if there was a -10% interest rate on cash, your $10 bill would actually be worth only $9. It is basically a penalty for using cash.

    The excuse is that this will stabilize the economy by keeping more capital in the banks. It means banks, and by extension, the Federal Reserve, have more control over your money.

    The Federal Reserve controls interest rates. Goodfriend claims that sticking to positive interest rates is an unnecessary limitation on their power to affect “interest rate policy to stabilize employment and inflation over the business cycle.”

    So he wants to remove this encumbrance of positive interest rates in order “to free the price level from the destabilizing influence of a relative price over which monetary policy has little control.”

    He is saying that the Federal Reserve has no control over the actual real-world economics of supply and demand. Prices naturally fluctuate with the market. They are indeed relative, based on how much is being produced and consumed. This doesn’t sit well with economic dictators.

    Goodfriend says banks should be able to charge people money to store their money. But then why would anyone keep their money in a bank? They wouldn’t unless the cash negative interest rate was even higher.

    He likens this to removing the gold standard. The gold standard, Goodfriend argues, was also an encumbrance on monetary policy, “destabilizing” prices.

    Yes, the Federal Reserve could not screw people as easily when there was a gold standard. The value of money was actually based on something other than the whims of a few Federal Reserve governors.

    Federal Reserve notes are only worth something because the government says they are. Wide acceptance of dollars as a store of value is the only thing that keeps the dollar afloat.

    But if you are the type that prefers to store your savings in something tangible, with real value, check out our list of the 5 best off-grid currencies (that don’t require electricity).
     
  2. JayDubya

    JayDubya Platinum Bling Platinum Bling

    Joined:
    Apr 5, 2010
    Messages:
    4,129
    Likes Received:
    4,183
    Trophy Points:
    113
    Can someone please explain how there would be more capital in the banks. If the bank is taking ten cents of every dollar I deposit, I think I'd learn real quick to stop depositing money.
     
    D-FENZ likes this.
  3. Bigjon

    Bigjon Silver Member Silver Miner Site Supporter ++

    Joined:
    Apr 1, 2010
    Messages:
    2,063
    Likes Received:
    1,863
    Trophy Points:
    113
    hates gold and cash is like saying, hates discipline and privacy.
     
    oldgaranddad and gnome like this.
  4. gnome

    gnome Platinum Bling Platinum Bling

    Joined:
    Apr 10, 2010
    Messages:
    4,162
    Likes Received:
    2,492
    Trophy Points:
    113
    Make Goldman Great Again

    What a fraud!
     
    searcher likes this.
  5. AguA

    AguA Seeker Seeker

    Joined:
    Apr 1, 2010
    Messages:
    310
    Likes Received:
    168
    Trophy Points:
    43
    The answer is in these combined quotes from the article (parentheses are mine):

    “the interest rates at banks hardly give you much incentive to store your money there.” (in a bank account)

    “thinks there should be a robust negative interest rate placed on cash.” (in your wallet)

    Therefore, “if there was a -10% interest rate on cash (in your wallet), your $10 bill would actually be worth only $9. It is basically a penalty for using cash."

    "Goodfriend says banks should be able to charge people money to store their money.(in a bank account) But then why would anyone keep their money in a bank? They wouldn’t unless the cash negative interest rate was even higher."


    They will charge you for having your money in their banks AND penalize you even more for choosing to carry cash dollars in your wallet to pay for purchases. This will force you to pick the form of money with the lesser charges to pay. Forcing your money into their bank equates to greater available capital for them. Keep in mind your dollars will have lesser spending value only in your hands, not in theirs.

    And pay them you will.
     
    Last edited: Dec 7, 2017 at 10:49 PM
    searcher likes this.
  6. hoarder

    hoarder Midas Board Mmbr Platinum Bling

    Joined:
    Mar 30, 2010
    Messages:
    9,553
    Likes Received:
    7,950
    Trophy Points:
    113
    Location:
    Montana
    Trumpstein is filling the swamp with alligators. oy.jpg
     
    gnome likes this.

Share This Page