tag:blogger.com,1999:blog-2277215496195926573.post2244735896735215480..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: Abolish cash so as to make negative interest rates easier?Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2277215496195926573.post-27244937196212897622015-05-17T02:00:37.176-07:002015-05-17T02:00:37.176-07:00New money flows OUT OF as well as into the busines...New money flows OUT OF as well as into the business sector: e.g. businesses pay wages. That’s money leaving the business sector and entering the personal sector.<br /><br />Corporate cash piles ARE HIGH at the moment, but that’s not always been the case.<br />Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-283822082203533812015-05-16T11:48:19.534-07:002015-05-16T11:48:19.534-07:00Some people have the impression that money is not ...Some people have the impression that money is not being spent fast enough. Or the inverse, people are saving too much. Either way, negative interest rates are proposed to counter these two perceptions<br /><br />This is entirely a consumer based perspective.<br /><br />The business based perspective is the opposite. Negative interest rates would be an additional cost of business. <br /><br />Someone must own money at all times. That fact requires that the money must be 'locatable by ownership' at all times. <br /><br />It follows that money spent by government into the hands of consumers does not just disappear when spent. Instead, the money flows into the category of "business" which must include pension funds as well as retail business. New money, from any source, must flow to into the business category and there remain until de-newed by taxation or debt repayment.<br /><br />Now, which business subgroup would be the beneficiary of negative interest rates?Roger Sparkshttps://www.blogger.com/profile/01734503500078064208noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-77057301738484165352015-05-16T07:20:55.811-07:002015-05-16T07:20:55.811-07:00This comment has been removed by the author.Roger Sparkshttps://www.blogger.com/profile/01734503500078064208noreply@blogger.com