EPTYou just force people to keep cash at home. Which is inconvenient for them. In first scenario they could print some money and help euro-zone states with their budget deficit. What am I missing?
European Politico-economics QA Mega-thread - Page 437
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arbiter_md
Moldova1219 Posts
You just force people to keep cash at home. Which is inconvenient for them. In first scenario they could print some money and help euro-zone states with their budget deficit. What am I missing? | ||
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cLutZ
United States19574 Posts
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WhiteDog
France8650 Posts
On March 14 2016 04:26 arbiter_md wrote: I try to compare a situation when ECB decides to print some euros and to keep interests at 0% with the situation where they print no money and push for negative interest rate. And I don't see any advantage in the second situation. You just force people to keep cash at home. Which is inconvenient for them. In first scenario they could print some money and help euro-zone states with their budget deficit. What am I missing? Advantage for whom ? Who benefit from negative interest rates ? The banking system and the finance, that can swim in easy central bank money. Every possible policy is now tailored with the idea that the banking system and the finance market have the monopole on financing the economy, which is stupid. | ||
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Nyxisto
Germany6287 Posts
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WhiteDog
France8650 Posts
On March 14 2016 04:45 Nyxisto wrote: Isn't the bank of Japan directly financing the Japanese economy and they're still not getting out of the deflation? Monetary policies as the primary solution seems like a fight with a blunt weapon increasingly This idea that it is a blunt weapon makes me cringe, how did we fought and financed the two world wars exactly ? A pretty deadly weapon if you ask me.... Japan used debt to finance its deficit, like any other country. Japan made the same mistake that the european countries are doing right now : they thought they could fight against their inexistant growth by increasing cost competitiveness, lowering wages and making it easier for firm to fire their workers (like we are doing in France, like Italy did, like Spain, Portugal, Greece, Germany, etc.). And they tried to fight the high debt by consolidating their finance (reducing the deficit) at first. It's only been a few years that the bank Japan has been monetizing the deficit, and they did some seriously stupid shit before then. And what's the result of that monetization ? NO INFLATION (which means nothing bad - the inflation only picked up after a stupid increase in added value tax). It means that they should continue, and increase the monetisation of the debt, not that it is inefficient. ![[image loading]](http://inflation.us/wp-content/uploads/2015/01/japanvsusdebtmonetization.jpg) http://inflation.us/japan-vs-us-budget-deficit-monetization/ http://www.bloombergview.com/articles/2014-09-24/japan-s-debt-trap May I add that monetizing the deficit is not a monetary policy (whose goal is to manage inflation, saving, interest rates, etc.), it is the financing of a budgetary policy : investment in infrastructure, education, etc., all things that benefit your growth both in the short and in the long run. | ||
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OtherWorld
France17333 Posts
I thought with your history you'd know better | ||
zatic
Zurich15362 Posts
On March 14 2016 07:03 OtherWorld wrote: Poor Germany I thought with your history you'd know better I think it went pretty well overall. In my mind I have temporarily excluded anything Sachsen from Germany anyway. | ||
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Nyxisto
Germany6287 Posts
seriously though these results are pretty embarrassing | ||
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oneofthem
Cayman Islands24199 Posts
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AngryMag
Germany1040 Posts
Easily the worst chancellor since fucking Adolf. | ||
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Mafe
Germany5966 Posts
Anyway, for my home state Baden-Württemberg I'm reasonably happy, as long as Kretschmann remains in office. | ||
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AngryMag
Germany1040 Posts
On March 14 2016 08:10 Mafe wrote: I struggle to decide if the rise of the AfD is due to more germans adopting populisitc standpoints, or if these people always had this opinion, but 5-10-20 years ago, all of them had voted for the CDU. Anyway, for my home state Baden-Württemberg I'm reasonably happy, as long as Kretschmann remains in office. Yeah living in BW I don't have a problem with Kretschmann either. AFD will continue to prosper as long as it gets demonized by our friends in office and the media. Let's not act like they are going to reopen Sachsenhausen or like 15-25 % of the population are nazis. The vast majority of the parties position would have been a non issue in the CDU pre Merkel. | ||
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AngryMag
Germany1040 Posts
On March 14 2016 08:14 AngryMag wrote: Yeah living in BW I don't have a problem with Kretschmann either. AFD will continue to prosper as long as it gets demonized by our friends in office and the media. Let's not act like they are going to reopen Sachsenhausen or like 15-25 % of the population are nazis. The vast majority of the parties position would have been a non issue in the CDU pre Merkel. I quoted instead of editing  | ||
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Nyxisto
Germany6287 Posts
On March 14 2016 08:14 AngryMag wrote: Yeah living in BW I don't have a problem with Kretschmann either. AFD will continue to prosper as long as it gets demonized by our friends in office and the media. Let's not act like they are going to reopen Sachsenhausen or like 15-25 % of the population are nazis. The vast majority of the parties position would have been a non issue in the CDU pre Merkel. There are easily 20% of the population who are susceptible to far-right ideology, including völkisch and nationalist stuff, it's just that civilization keeps them at bay, don't underestimate how fast things can go down the shitter | ||
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AngryMag
Germany1040 Posts
On March 14 2016 08:45 Nyxisto wrote: There are easily 20% of the population who are susceptible to far-right ideology, including völkisch and nationalist stuff, it's just that civilization keeps them at bay, don't underestimate how fast things can go down the shitter yeah of course that is why nazi parties regularly get very low percentages and virtually never make it over the hurdle. The reality is if you are far enough on the left you just brand 20% as nazis and feel morally superiour. Leftist bigotry and the utter ineptitude to compromise with ~15-20% of the population while declaring themselves morally superiour will just help them to gain more traction. | ||
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Nyxisto
Germany6287 Posts
https://www.bundestag.de/dokumente/textarchiv/2012/37499490_kw04_antisemitismusbericht/207504 | ||
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AngryMag
Germany1040 Posts
On March 14 2016 08:56 Nyxisto wrote: No, they usually do not score so well because there is a huge social and civil backlash against these elements in our society. Just look at studies that try to examine anti-Semitic or anti-democratic tendencies among the population. The numbers are very high https://www.bundestag.de/dokumente/textarchiv/2012/37499490_kw04_antisemitismusbericht/207504 So they are antisemitic as fuck want to reopen Ausschwitz but they don't vote Nazis because they are afraid of the civil backlash? Do I get this right? | ||
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Nyxisto
Germany6287 Posts
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AngryMag
Germany1040 Posts
On March 14 2016 09:02 Nyxisto wrote: you don't need to literally be Hitler to end up on the far right of the political spectrum, far-right defined as so radical that it's a danger to our democracy. Anti-Semitism, authoritarianism and so are reasonable indicators to gauge if people are sympathetic to far-right thought, and yes in states with a stronger democratic tradition those people will usually not vote for far-right parties. In the new states that only have been democracies for 25 years you can see how fast this changes. The AfD jumped from zero to 24% in one election. So the nazis voted the AFD today and pre Merkel the 20% nazis voted the CDU because they had very similar position? Implying that the AFD will attempt to throw other the free democratic basic order is so warped that it is almost funny which leads back to leftist bigotry and the utter ineptitude to compromise with other points of view. They'll continue to grow and one of the big reasons for this is the simplicistic view of the left that everybody who heavily disagrees with the current course is infact a nazi and would like to march eastwards rather sooner than later. | ||
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Nyxisto
Germany6287 Posts
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