{"id":4817,"date":"2015-01-25T07:48:01","date_gmt":"2015-01-25T12:48:01","guid":{"rendered":"http:\/\/olduvai.ca\/?p=4817"},"modified":"2015-01-25T08:43:41","modified_gmt":"2015-01-25T13:43:41","slug":"get-ready-for-negative-interest-rates-in-the-u","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=4817","title":{"rendered":"Get Ready For Negative Interest Rates In The US"},"content":{"rendered":"

Get Ready For Negative Interest Rates In The US<\/a><\/h3>\n

With Fed mouthpiece Jon Hilsenrath warning –\u00a0in no lesser status-quo narrative-deliverer than The Wall Street Journal\u00a0<\/a>– that The ECB’s actions (and pre-emptive collapse in the EUR) means the\u00a0U.S. economy must deal with a rapidly strengthening dollar that will make American goods more expensive abroad, potentially slowing both U.S. growth and inflation<\/strong>; and Treasury Secretary Lew coming out his crypt to mention “unfair FX moves,” it appears The Fed (and powers that be) are worrying about King Dollar. This suggests, as\u00a0Mises Canada’s Patrick Barron predicts,<\/a>\u00a0the Fed will start\u00a0charging negative interest rates on bank reserve accounts as the final tool in the war on savings and wealth<\/strong>\u00a0in order to spur the Keynesian goal of increasing \u201caggregate demand\u201d. If savers won\u2019t spend their money, the government will take it from them.<\/p>\n

As The Wall Street Journal explains,<\/em><\/a><\/p>\n

\n
The European Central Bank\u2019s launch of an aggressive program this week to buy more than \u20ac1 trillion in bonds\u00a0poses important tests for the U.S. economy and the Federal Reserve.<\/strong><\/div>\n

Europe\u2019s new program of money printing\u2014and the resulting fall in the euro\u2014means the\u00a0U.S. economy must deal with a rapidly strengthening dollar that will make American goods more expensive abroad.<\/strong><\/p>\n

The stronger dollar could slow both U.S. growth and inflation, giving the Fed some incentive to hold off on its plan to raise short-term interest rates\u00a0<\/strong>later this year from near zero.<\/p>\n

…<\/p>\n

A stronger dollar has three important implications for the U.S. economy, markets and policy makers.<\/strong>\u00a0First, it tamps down inflation just as the Fed is trying to raise inflation closer to 2%. Second, it hurts exports and therefore economic growth. Lastly, the attraction of U.S. financial assets could heat up markets just as regulators keep watch for dangerous asset bubbles.<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Get Ready For Negative Interest Rates In The US With Fed mouthpiece Jon Hilsenrath warning –\u00a0in no lesser status-quo narrative-deliverer than The Wall Street Journal\u00a0– that The ECB’s actions (and pre-emptive collapse in the EUR) means the\u00a0U.S. economy must deal with a rapidly strengthening dollar that will make American goods more expensive abroad, potentially slowing […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[233,303,305,2870,558,1389,839,2871,861],"class_list":["post-4817","post","type-post","status-publish","format-standard","hentry","category-economics","tag-ecb","tag-fed","tag-federal-reserve","tag-jon-hilsenrath","tag-negative-interest-rates","tag-nirp","tag-us-dollar","tag-us-growth","tag-wall-street-journal"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4817","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4817"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4817\/revisions"}],"predecessor-version":[{"id":4835,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4817\/revisions\/4835"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}