tag:blogger.com,1999:blog-4900303239154048192.post6315629879173897339..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Bye Buy Zero Lower Bound on Nominal Interest Rates?Unknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-4900303239154048192.post-68940783287971427292012-11-18T08:09:01.157-05:002012-11-18T08:09:01.157-05:00I really appreciate you, your post is very informa...I really appreciate you, your post is very informative , and if you want to increase you traffic,<a href="http://www.pkbazaar.com" rel="nofollow"> Post free ads here </a> or to sell or buy products visit at <a href="http://www.pkbazaar.com" rel="nofollow"> Buy & Sell Products </a> PKBAZAARhttps://www.blogger.com/profile/07331590584377386217noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-69070812344092708632012-07-24T13:42:27.111-04:002012-07-24T13:42:27.111-04:00Shame on me, Rob. Probably it was their mothers w...Shame on me, Rob. Probably it was their mothers who were barking too loudly...<br /><br />John, without doubt deflationary expectations are coming on strong in all of this. While I said it may be for good or bad, this is mostly a bad sign, even if some governments are getting to fund themselves on the cheap. Heck, it is not every day that one makes money by borrowing it.Barkley Rosserhttps://www.blogger.com/profile/13114257724762074636noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-13169921940687010662012-07-24T08:59:58.358-04:002012-07-24T08:59:58.358-04:00Really? "Dogs" in this day and age? Fo...Really? "Dogs" in this day and age? For shame.Rob Lhttps://www.blogger.com/profile/01251228298836736535noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-67955586670391998442012-07-23T19:54:19.880-04:002012-07-23T19:54:19.880-04:00So what's the mechanism by which negative inte...So what's the mechanism by which negative interest rate bonds come about? Well, if cash is king and there is only a limited supply of actual cash currency and all prices are denominated in cash, then the only way in which the increased demand for cash can be articulated is through a rise in the price, thus lowering of yield, in the nearest cash equivalent, T-bills, through swapping longer-dated t-bonds for t-bills, which then is expressed as a lower, "negative" price for t-bills in currency terms, and the t-bills then serve as rough cash equivalents in collateralizing further financial transactions. That's not too hard to figure. But then add on deflation risk and the threat of the blowing apart of the Euro, (which looks all too likely), and a speculative flight into T-bonds from likely currency appreciators, (Germany and especially Denmark, which is only pegged to the Euro and so can more quickly adapt to a break-up) and there is little mystery involved. But whether this is a "new world of financial markets" rather than just a likely global deflationary depression, (and we've seen that movie before), I suppose depends on just what you might think the "monetary" solution might be.john c. halaszhttps://www.blogger.com/profile/17176419625607679150noreply@blogger.com