Monday, April 4, 2016

Another ZIRP Victim


Too bad for this probably rich free-riding slacker architect guy trying to live off of interest income on his savings... how dare he the nerve of this guy seeking provision for himself via government interest income ... NPR is exposed here and probably clandestinely stands for "Neo-liberal Public Radio" and is part of the vast global neo-liberal conspiracy.



12 comments:

Simsalablunder said...

So you're building a army of straw men. Good for you! … …

Matt Franko said...

"neo-liberal" is a figure of speech... ERISA is a real thing....

Simsalablunder said...

""neo-liberal" is a figure of speech"
You can say that about your army of straw men too…

Matt Franko said...

ERISA is an acronym it stands for Employees Retirement Income Security Act... It's not a figure of speech....

Where is the straw man?

MMT proposals are for current maintenance of ZIrp and permanent zirp....

Guys like this architect are screwed by this policy....

Where is the straw man?

"A straw man is a common form of argument and is an informal fallacy based on giving the impression of refuting an opponent's argument, while actually refuting an argument that was not advanced by that opponent."

Their argument is for current and permanent zirp... This architect and many other people like him are harmed by this policy.... It's a bad policy ...

No straw man....

Neil Wilson said...

"Where is the straw man?"

The straw man is the idea that somebody should be able to save money in a bank and live off it.

You can't, you never have been able to and you shouldn't be able to. You have to invest in productive assets, or you have to elect a government prepared to offer decent levels of social security on an equitable basis.

You know that saving financially causes a paradox of thrift effect that has to be offset. It is a very stupid thing to encourage systemically.

Matt Franko said...

Well Neil we have $18T in ERISA (which is a LAW btw libertarians...) accounts put there over the last 42 years with actuaries planning on a greater than zero risk free rate in their models...

so to now propose that these people never get the risk free rate that they have been trained for 42 years to assume in their models is the height of irresponsibility... either by the MMT people or the moron tptb....

People save you cant get around that... have to include it and accommodate it somehow...

wiki Here: "Paradox of thrift was popularized by the renowned economist John Maynard Keynes. It states that individuals try to save more during an economic recession, which essentially leads to a fall in aggregate demand and hence in economic growth."

Keynes thinks like "recessions" are an inevitable stochastic occurrence....

If you run policy correctly you would never have recessions... look at how it is going right now.... nice $50B yoy increase in leading flows no recession and stable prices (actually some falling prices in consumer goods....) but people would still save even without a recession so there goes your and Keynes paradox of thrift argument...

Matt Franko said...

and ps still not a straw man argument for that I would have to be asserting that MMT proposes something other than current and permanent ZIRP...

They are indeed proposing current and permanent zirp which I assert has substantial negative effects on current savers as manifested by the EVIDENCE in this NPR piece...

Bob said...

Just give that architect a welfare payment to top up the lack of interest income.

Matt Franko said...

Well maybe he chooses not to work part of the year or between gigs and then plans on using savings with a return to get thru between gigs...

To each his own... but we have 42 years of law and $18T to show for the current policy and imo we have to deal with it in a mature/intelligent fashion....

Neil Wilson said...

"To each his own... but we have 42 years of law and $18T to show for the current policy and imo we have to deal with it in a mature/intelligent fashion...."

How is paying the Chinese rather than pensioners mature or intelligent?

Rather than Treasuries you should be able to buy an annuity from the government if you are a US individual of a certain age. You give the federal government your pot and they promise you so much a week index linked.

That's how you fix it.

And just for the record you used to be able to draw a UK state pension at 65 after 40 years of paying National Insurance Contributions. Now it's 67 and soon it will be 70. Why? Because the government changed the rules - again.

The currency is a state monopoly and monopoly rules apply.

Malmo's Ghost said...

"Rather than Treasuries you should be able to buy an annuity from the government if you are a US individual of a certain age. You give the federal government your pot and they promise you so much a week index linked."

Yes, but we don't have this option in the states, and likely won't into the foreseeable future. So then what?

Matt Franko said...

"How is paying the Chinese rather than pensioners mature or intelligent?"

Well then maybe propose going after that pot instead of just ignoring 42 years of law and the plans of millions of US citizens...

This out from Trump this am:

https://finance.yahoo.com/news/trump-push-mexico-fund-wall-blocking-money-transfers-114326474--sector.html

Go after the FOREIGN USD savings and leave the US people alone...

btw did Keynes take the paradox of thrift so far as to think savings could cause a recession? I dont think that would ever be so...