A new economic era?

Its Deutsche Bank, the guys who have bet the farm on rising interest rates, with extreme leverage...

 

"The market can remain irrational a longer than you can stay solvent."

 

"The market can remain irrational a lot longer than you can stay solvent."

 

This is very informative

 

There is loads they can do to put confidence back in the market. All this new government debt is a bit worrying. They need to come up with a plan to pay the debt off, that will reassure the market. There is a lot they can do with pension reform and through introducing a secondary economy on top of the existing economy, that is tax exempt.

 

Stick around you'll love it here.

 

Just increase pension saving instead of increasing the interest rate, it worked in the UK and it is cheaper too. I can't see the interest rate rising due to the low level of demand in the economy, so it is likely the interest rate will stay low for a while.

 

%%
Maybe;
in Portland+ only if they are dumb enough to put up with nonsense. Maybe not/not many are good with that KIND OF PREDICTION...………………………………………………………………….

 

Yes. Everybody gets it -interest rates will never rise again, everybody but Deutsche Bank has made that conclusion.

 

There is still some risk of the interest rate rising if there is inflation, due to the primary mechanism used to control inflation being an interest rate increase. However there are other mechanisms that can be used. In the United Kingdom they have been using pension policy to control inflation, which is cheaper due to the increased cost of government debt interest repayments that occur when the interest rate rises. Increasing pension saving is cheaper even with the cost of pension tax relief, it also increases private sector provisions that protect the long term economy.

Pensions can also be used to stimulate economic growth, which is something that has been neglected. Pension Pumping when the pension saving allowances are cut in the short term to reduce pension saving and increase consumption has proven effective in the United Kingdom. There is another missed aspect of macroeconomics which I have been developing called Pension Fund Easing that directs pension fund investments into certain products to speed up the velocity of transactions. I believe this can increase economic growth by 2 to 4 percent each year and will enable countries to growth themselves out of the government debt they have if they enact it.