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11:20 am
August 1, 2009
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djino
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1:00 pm
August 1, 2009
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Hornswoggler
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oh dear 
its like our money is worthless to the banks.
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8:40 pm
August 2, 2009
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Mike
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Hornswoggler said:
oh dear
its like our money is worthless to the banks.
Bingo. But it is extremely valuable in the deep recession we have right now to every other company/business and person than banks as they are getting it basicly free (0.25%) from the Gov't. Why would the bank pay more to you than the gov't is lending it to them for? But they will lend it out at a lot more.
Liquid assets (cash) right now are better than gold. And if you think about it, your 1-2% ROI for being in cash is also + the % of – GDP and deflation.
Mike
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2:26 pm
August 3, 2009
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Hornswoggler
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there is no deflation and fiat money will eventually be seen for what it is (i.e. worthless) if central banks keep on dishing out free money to their puppet masters the commercial banks at the expense of savers.
the rate of inflation claimed by the government statistics are lies.
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11:09 pm
August 5, 2009
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Chicken Broth
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Few people knew about PT before 2009, but now everyone is moving their assets to PT. They can't deal with this sudden rush of new clients, and as a result their rates will continue to drop until they stabilize at 1% like all other banks.
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8:18 am
August 17, 2009
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bubbasweet
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Why does alot of money coming into a bank like PT = the need to stabilize? Or rate drop. To me (not an economist) wouldn't more money coming in = more money for the bank to make more money with? meaning abiliy to keep rates higher? This is what I do not understand about finance?
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7:57 pm
August 17, 2009
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mike
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bubbasweet said:
Why does alot of money coming into a bank like PT = the need to stabilize? Or rate drop. To me (not an economist) wouldn’t more money coming in = more money for the bank to make more money with? meaning abiliy to keep rates higher? This is what I do not understand about finance?
Banks can borrow the money they need at libor or BoC rate of .25% so there is little incentive to borrow that same money from a saver at 1 or 2%.
Mike
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8:01 pm
August 17, 2009
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Hornswoggler
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what it means is that your savings are worthless as the government is printing up and handing out money to banks for free.
meanwhile your savings earn no interest and get destroyed through inflation.
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1:42 am
August 18, 2009
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mike
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Hornswoggler said:
what it means is that your savings are worthless as the government is printing up and handing out money to banks for free.
meanwhile your savings earn no interest and get destroyed through inflation.
I wouldn't say that, it might seem like that at 1% (or less) savings rates, but right now we are in a deflation environment, something to the tune of 2-3% yr as prices continue to go down. So, you "could add" that to your savings rate thusly:
HSBC 1%
Deflation 2%
———–
Savings 3%
QE is a continual problem as you will have more cash in the system as the economy recovers, but much of the QE cash to banks are to non-public resources like bank balances to hold in reserve (ie not to be released to the economy).
Mike
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9:48 am
August 18, 2009
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bubbasweet
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SO what will stop the cheap money being lent by the government? There must be a limit no?
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12:45 am
August 19, 2009
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mike
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bubbasweet said:
SO what will stop the cheap money being lent by the government? There must be a limit no?
In theory, there is no limit to what can be printed.
In economics, the limit will be when people will not buy Treasury Bonds/Bills or have confidence in the value of the dollar to purchase it. This limit is being reached in the USA (note their dropping dollar value and failing bond auctions). See: http://www.breadwithcircus.com/dollarindex.jpeg
Items priced in USA (like Oil and Gold) appear to go up in value, but the truth is it just takes more US dollars to purchase it.
Mike
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10:54 am
August 24, 2009
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sean
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Let’s hold off on all this talk of deflation for a few months at least.
http://www.bankofcanada.ca/en/cpi.html
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6:23 pm
August 24, 2009
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Hornswoggler
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there is no deflation and government statistics are all bogus.
prices just keep going up while interest on savings go down and salaries stay the same.
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2:22 am
October 1, 2009
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sean
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The Bank of Canada stats provided in the above link indicate 2009 has, with the exception of the past three months, been inflationary.
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4:44 pm
October 1, 2009
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Mike
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There is no question we are in a deflationary period thanks to the newest stats by StatsCan today. CPI has fallen from 0.1% to 0.0%, even at this years 0.1% growth (thanks to last month), that isn't much inflation.
Deflation has been here for the past 12 months.
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9:55 am
November 1, 2009
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Kevin
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Hornswoggler said:
what it means is that your savings are worthless as the government is printing up and handing out money to banks for free.
meanwhile your savings earn no interest and get destroyed through inflation.
The government doesn't print money, they borrow it from the central bank which is a private corporation which controls the country's intrest rates. See this website, keep in mind all central banks are the same.
http://www.themoneymasters.com/
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2:48 pm
November 2, 2009
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Brad Nailer
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Mike said:
". . . it might seem like that at 1% (or less) savings rates, but right now we are in a deflation environment, something to the tune of 2-3% yr as prices continue to go down."
My emphasis in the above quote. Which prices are going down? A lot of stuff is going up!
Gasoline for instance, or that loaf of bread that's now more expensive than it was a year ago. Same with a tin of tomatoes. And you're saying "prices are going down?" On which planet? The only things "going down" are most people's incomes, which coincide with their savings or ability to save.
A $100 bill is the new $20. I think a lot of economics is a bunch of jive-turkey doublespeak. Look at the word, "eCONomics". End of rant.
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1:41 am
November 3, 2009
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Mike
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Brad Nailer — Take your argument up with the Canadian Government:
Consumer prices were 0.9% lower in September than they were in September 2008, following a 12-month decline of 0.8% in August.
The major contributor to the year-over-year decline in the Consumer Price Index (CPI) in September was energy products, as it has been for a number of months. Overall, in the 12 months to September, energy prices fell 18.7%.
http://www.statcan.gc.ca/subje…..91016d.gif
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2:46 pm
November 5, 2009
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JR
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bubbasweet said: Why does alot of money coming into a bank like PT = the need to stabilize? Or rate drop. To me (not an economist) wouldn’t more money coming in = more money for the bank to make more money with? meaning abiliy to keep rates higher? This is what I do not understand about finance?Banks can borrow the money they need at libor or BoC rate of .25% so there is little incentive to borrow that same money from a saver at 1 or 2%. Mike
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2:47 pm
November 5, 2009
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JR
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bubbasweet said: Why does alot of money coming into a bank like PT = the need to stabilize? Or rate drop. To me (not an economist) wouldn’t more money coming in = more money for the bank to make more money with? meaning abiliy to keep rates higher? This is what I do not understand about finance?Banks can borrow the money they need at libor or BoC rate of .25% so there is little incentive to borrow that same money from a saver at 1 or 2%. Mike
Mike, what makes you believe banks can borrower from the BoC?
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