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Author Topic: Low rates will trigger civil unrest as central banks lose control  (Read 813 times)
Chef Ramsay (OP)
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March 21, 2015, 11:18:38 PM
 #1

Low inflation, bond yields and interest rates around the world will push the boundaries of economic and political stability to breaking point if they continue on their downward trajectory, the Bank for International Settlements has warned.

The Swiss-based "bank of central banks" said the "sinking trend" of global rates would push countries further into uncharted territory.

It highlighted that $2.4 trillion (£1.6 trillion) of long-term global sovereign debt was now trading at negative yields, with an increasing number of investors willing to pay governments for the privilege of lending to them.
...

http://www.telegraph.co.uk/finance/economics/11479425/Low-rates-will-trigger-civil-unrest-as-central-banks-lose-control-BIS.html
GreenStox
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March 22, 2015, 03:19:21 PM
 #2

Yep i also have deposits in 2 different banks, and the interest rate was lowered since i reached adulthood (18) and now i`m (28) from 15% to 2.5% so i could have became rich from my deposits that my parents put in there when i was a child to save some money for me, and the second one i put from my own income and hard work.

Too bad, bad luck for me, the globalist maffia had other plans for my deposits, they just want to loot it. And now as the interest rate drops and drop and drops, the inflation , the official one is less than 1%, but rest assured it's about 3% as i calculated it, they probably lie about the official rate anyway.

So at the moment i`m losing 0.5% yearly on my deposits, so as bitcoin will become more stable, i`ll empty my bank account and put it all in bitcoin.

I`m getting tired of their fractional ponzi scheme inflating my saving away, and i wont waint until the government thugs come and freeze my account when the "bank run" happens.

Just pray that the global ponzi scheme lasts 1 more year until bitcoin stabilizes then i`ll cut ties totally with the fiat garbage system.

When we got alternatives in our nice bitcoin community, why should we use the fiat garbage that these thieves shove down our throats anyway?  Grin

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shogdite
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March 22, 2015, 03:45:18 PM
 #3

The sooner central banks lose control the better, what's the point of trying to save if your money is just stagnating in a bank with some pittance interest rate.

If I had any substantial amounts of fiat I'd either be investing in property or exchanging it for bitcoin, ideally both.


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GreenStox
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March 22, 2015, 03:53:04 PM
 #4

The sooner central banks lose control the better, what's the point of trying to save if your money is just stagnating in a bank with some pittance interest rate.

If I had any substantial amounts of fiat I'd either be investing in property or exchanging it for bitcoin, ideally both.

I do have a little farmland, which i inherited though.

I don't have enough saved to do property trading ,also i definitely dont like the real estate market it's too inflated, it will come down as the bubble will pop or they will inflate it wih more QE until hyperinflation kicks in, either way, if i invest in it now, then i`ll lose it all.

It's in savings because i havent found a better investment: gold is going down, and even when it starts to rise again it wont make a significant ROI %.

So the only investment that i can think of that will survive, and not just, but thrive and prosper in the collapse is crypto currencies.

Now i might construct a crypto portfolion, i wont put it all in bitcoin, but i`ll definitely wont buy Greek or Japan bonds lol.

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manwithat
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March 22, 2015, 04:39:24 PM
 #5

About economy we know nothing. I don't know if low interests are good or bad, and I study economy. It's crazy.

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March 22, 2015, 05:57:02 PM
 #6

About economy we know nothing. I don't know if low interests are good or bad, and I study economy. It's crazy.

You mean you know nothing, don't speak for us, interest rates fluctuating are never inherently bad just like market price fluctuating aren't, however if you keep interest rates low artificially for an extremely long period of time as central banks have then it completely destroys savers and incentivises reckless borrowing.
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March 22, 2015, 08:29:15 PM
 #7

Low inflation, bond yields and interest rates around the world will push the boundaries of economic and political stability to breaking point if they continue on their downward trajectory, the Bank for International Settlements has warned.

The Swiss-based "bank of central banks" said the "sinking trend" of global rates would push countries further into uncharted territory.

It highlighted that $2.4 trillion (£1.6 trillion) of long-term global sovereign debt was now trading at negative yields, with an increasing number of investors willing to pay governments for the privilege of lending to them.
...

http://www.telegraph.co.uk/finance/economics/11479425/Low-rates-will-trigger-civil-unrest-as-central-banks-lose-control-BIS.html
We are reaching the end game of a 20 year long experiment of lowering rates to help the economy.  Now we have reached zero, and are going beyond to a slight negative.  I expect the next step will be a more significant negative, maybe 3-5%, then control might be lost. 

Why should I keep my money in a bank when I will lose 3% a year when it is there? Obviously I won't do that, so they will have to bring in strict capital controls.  In apparently prosperous nations with stock markets at all time highs and borrowing costs at all time lows, that will not go down well.
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March 22, 2015, 09:58:26 PM
 #8

Quote
Obviously I won't do that, so they will have to bring in strict capital controls.

We already have capital controls:

http://www.zerohedge.com/news/2015-03-20/justice-department-rolls-out-early-form-capital-controls-america
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March 23, 2015, 09:30:21 AM
 #9

About economy we know nothing. I don't know if low interests are good or bad, and I study economy. It's crazy.

Then you dont study economics, you just study the propaganda that the keynesian henchmen tell you.

Interest rates could fluctuate based on market supply and demand for loans, but the problem is that the central bank keeps them artificially low to serve their speculative agendas.

Basically they take all the depositors money and gamble it in the derivative markets. And we know how a gambling session ends, and when they lose they either loot the entire collateral, the depositors money, or they use the tax payers money if that's not enough, or they loot both.

And as the leverage piles up more and more, the odds of default is getting higher and higher, so their winning streak is starting to fade away.

There are 2 outcomes that could happen:
x  1) They default on the loan , which means billionaires will lose alot of money in their bond investments (they wont let this happen though)
✓ 2) They will print alot of money to keep the bubbles growing (stock market,housing, derivatives and oil) causing hyperinflation, and stall the collapse as long as possible (of course at the end they will still lose all as the entire economy collapses)

So yes, embrace yourselves guys, your taxes and supermarket prices will go up significantly in the next years Smiley

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Agestorzrxx
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March 23, 2015, 09:52:58 AM
 #10

Its far too late to do anything now as any interest rate rises will only bring an implosion on more quickly. They should have left well alone to begin with and let markets have taken their natural course. Decades of central bank manipulation will now unwind dramatically as all they have done is supercharge the problems instead of adequately addressing them. These are the most reckless men in history whom governments shower with knighthoods. Morally, ethically and intellectually disgusting.
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March 23, 2015, 01:52:39 PM
 #11

Low inflation, bond yields and interest rates around the world will push the boundaries of economic and political stability to breaking point if they continue on their downward trajectory, the Bank for International Settlements has warned.

The Swiss-based "bank of central banks" said the "sinking trend" of global rates would push countries further into uncharted territory.

It highlighted that $2.4 trillion (£1.6 trillion) of long-term global sovereign debt was now trading at negative yields, with an increasing number of investors willing to pay governments for the privilege of lending to them.
...

http://www.telegraph.co.uk/finance/economics/11479425/Low-rates-will-trigger-civil-unrest-as-central-banks-lose-control-BIS.html

I see the current extreme low interest rates as a tool for redistributing wealth (savings) from us to the top dogs. In addition if I want to see any sensible gains on my pension savings (just for keeping up with the inflation) I have to allow more and more risky investment packages. I'm just curious when I'll hear something like "Aaaaaand it's gone."
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