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Why not an interest rate of zero?

Submitted by huskesforever on Mon, 01/28/2008 - 00:39
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I think that this should be one of the questions on the politico thing. If the FED is so awesome at controlling the economy, why don't they just reduce the interest rate to zero in light of all this mess.

Then everyone would have all the money they need!

(Just so you know, i am being facetious)

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If $600 rebate is good, why not make it a million bucks?

Submitted by Maitski on Mon, 01/28/2008 - 08:49.

If the government can just print and borrow money and give everyone a big stack of cash to spend, why don't they get serious and give away a lot more than $600?

If cutting taxes is so good, why not eliminate them completely and really stimulate an economic boom?

I think all these questions would make it clear that these guys really don't know what they are talking about.

McCain said this on C-Span...

Submitted by wolfe on Mon, 01/28/2008 - 08:40.

One of should should add this question to the Politico site...

For McCain:
"In a C-Span interview, you stated that as president you would set interest rates to 0%. What kind of an effect on the economy, money markets, and the value of the dollar do you think this would have?"

—

The Philosophy Of Liberty -
http://www.jonathangullible.com/mmedia/PoL.English.The.Philo...

In a fiat money system like

Submitted by martfuncher on Mon, 01/28/2008 - 07:39.

In a fiat money system like ours THE method of recovery is RAISING interest rates and suffering through the resulting economic slowdown until bubble prices stabilize and the value of the currency returns.

It May Just Happen

Submitted by trisport on Mon, 01/28/2008 - 01:19.

It might take a few years, but it is possible to see rates go down to zero percent. It happened in Japan in the 90s, but didn't help them much. The Nikkei stock market is still well below its 1989 peak of 40,000 and real estate prices are alot lower too. If the dollar retains its value during the next recession or depression, then people would keep their money in the bank even if it payed no interest.

There was a time when...

Submitted by Tannim on Mon, 01/28/2008 - 00:58.

...credit card and other unsecured interest was tax-deductible in the same way as secured interest (like a mortgage). It's sure be nice to get that back.

That and up to 50% of our costs of going to work be deductile.

Hell, we can dream, can't we?

"Welcome to 2008: The Year of Ron Paul!"

Yeah, isn't it great how you

Submitted by AtticusFynch on Mon, 01/28/2008 - 08:19.

Yeah, isn't it great how you have to pay taxes on interest you receive, but can't deduct interest you have to pay?

Renewable Wealth - Profitable Green Investing

—

Renewable Wealth - Profitable Green Investing

..sure does stop anyone from

Submitted by Crickett on Mon, 01/28/2008 - 00:54.

..sure does stop anyone from saving a dime. No need for CD's..just more credit.

Because...

Submitted by martfuncher on Mon, 01/28/2008 - 00:51.

Because then you have no way to expand the money supply. You can only tighten it. The whole game is about heating up or cooling down the economy using inflation/deflation.

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dood.. i know, im just

Submitted by huskesforever on Mon, 01/28/2008 - 00:55.

dood.. i know, im just throwing it out to be an ass.. what scares me is that it really doesn't sound all that crazy compared to some of the stuff thats been coming out.

I think...

Submitted by martfuncher on Mon, 01/28/2008 - 00:59.

I think the idea you portrayed in your satire IS a common misconception. Just was elucidating further for the masses. =P

Not being facetious

Submitted by ericland on Mon, 01/28/2008 - 00:45.

Good idea... being as how its a non-profit private company, it could just write off the loss.... no problem.

Yeah! Then I'll borrow every cent they'll loan me.

Submitted by 12345678 on Mon, 01/28/2008 - 00:44.

Go President Paul!

—

’In accordance with the principles of double-think it does not matter if the war is not real. For when it is, victory is not possible. The war is not meant to be won, but it is meant to be continuous.’ (George Orwell, 1984)