Comments on: Make Sure You Get This One Right http://www.creditwritedowns.com/2009/07/make-sure-you-get-this-one-right.html Sat, 21 Nov 2009 08:48:41 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Edward Harrison http://www.creditwritedowns.com/2009/07/make-sure-you-get-this-one-right.html/comment-page-1#comment-5756 Edward Harrison Sun, 05 Jul 2009 09:22:03 +0000 http://www.creditwritedowns.com/?p=9240#comment-5756 Steve, it's good that you mention the Swedes. I will need to address their negative interest rate solution. Edward Hugh had a good article on them a few days back.<br><br>I don't think they are alone. They can simply be more aggressive because they are small. Steve, it's good that you mention the Swedes. I will need to address their negative interest rate solution. Edward Hugh had a good article on them a few days back.

I don't think they are alone. They can simply be more aggressive because they are small.

]]> By: Stevie b. http://www.creditwritedowns.com/2009/07/make-sure-you-get-this-one-right.html/comment-page-1#comment-5754 Stevie b. Sun, 05 Jul 2009 06:29:45 +0000 http://www.creditwritedowns.com/?p=9240#comment-5754 "The problem, as the Japanese can attest to, is that deflation is excruciatingly difficult to get rid of, once it has become entrenched. I am in no doubt which of the two evils I would prefer, but we may not have the luxury of choosing our own destiny."<br>But...with an ageing population and baby-boomers retiring on a fixed pension in greater & greater numbers, the vested interests of an increasing number of people in the developed world would be best-served by deflation.<br><br>"I will add that if my worst fears are proven correct and we have to fight a bout of deflation, the authorities will have no choice but to try and provoke price increases through aggressive policy measures."<br>This is the scary bit for savers/retirees. Sweden has started the ball rolling with negative interest rates - can others be far behind?<br><br><a href="http://globaleconomicanalysis.blogspot.com/2009/07/sweden-cuts-deposit-rate-to-negative-25.html" rel="nofollow">http://globaleconomicanalysis.blogspot.com/2009...</a> “The problem, as the Japanese can attest to, is that deflation is excruciatingly difficult to get rid of, once it has become entrenched. I am in no doubt which of the two evils I would prefer, but we may not have the luxury of choosing our own destiny.”
But…with an ageing population and baby-boomers retiring on a fixed pension in greater & greater numbers, the vested interests of an increasing number of people in the developed world would be best-served by deflation.

“I will add that if my worst fears are proven correct and we have to fight a bout of deflation, the authorities will have no choice but to try and provoke price increases through aggressive policy measures.”
This is the scary bit for savers/retirees. Sweden has started the ball rolling with negative interest rates – can others be far behind?

http://globaleconomicanalysis.blogspot.com/2009...

]]>