Tthe IMF said it is introducing a floor of 0.05 percent for the interest rate on Special Drawing Rights (SDRs). The IMF’s move shows how global financial conditions are heading into never-never-land. Just how are these governments going to handle the Great Recession? Will rates go to -10% to achieve stimulus?
What they do not grasp is there are two-sides to every coin plus the edge. All they think is lowering rates will force people to spend and borrow, yet they raise taxes and hunt cash like a serial killer. They are wiping out the elderly and the pension funds who were told to save for their retirements and now the whole socialistic idea is being flushed down the toilet.
Ah – my future for just someone with a brain to step forward in politics. This is not going to end very well.
