| I am always amused when I see people do not believe in competition in capitalistic markets. >May be because flooding market with free money called quantitative easing isn’t anymore putting selective pressure on efficiency of company. Quantitative easing does no such thing. Educate yourself about the banking sector. Private commercial banks create money. Quantitative easing is a bandaid to maintain liquidity between banks as depositors demand ever more liquidity. I hope you are aware that when you have a mass of people being unemployed then hiring them by no means deprives another company of a potential employees because that other company can just hire another unemployed person. When there is unemployment there is no competition over employees. It is impossible for there to be competition amongst companies. The idea that somehow free money is ruining everything shows a complete lack of understanding of even the most basic concepts of a market economy. >Can you imagine negative interest is literally like getting paid to subscribe to a loan People pay money to store cash in safes it is only natural that people pay money to store risk free liquidity when the real economy consists of nothing but risk and illiquidity. >So thousands and thousands of companies are keeping alive with zero or negative profit. Those company are totally inefficient or sustainable in a normal world where you have to fight to be profitable. Fight to be profitable over what? What constraint exists that forces companies to win a competition? A lack of employees? No. A lack of physical capital? No. A lack of energy? Maybe but there are energy producing technologies that benefit from lower cost of capital. Again, if you have a mass of unemployed and underpaid people it doesn't matter how efficiently you use them because you are competing with unemployment, a wholly unproductive activity or underemployment which is partially unproductive. I find it amusing that your primary concern with the economy is that profit requirements have disappeared and hence we are able to create more wealth and employ more people, you deride those things as unproductive or inefficient, as if people have to operate at peak efficiency their entire life or get eaten by the commercial bank and investor sharks as threatening people with poverty and long term unemployment is the only way to beat the laziness out of people while blaming those people for the systemic unemployment you advocate for as that allows you to call people lazy and absolve you from any responsibility. Anyone who understands the system knows that it is wrong and no, a lack of extortion through interest is not the part that is wrong. |
You didn’t even understand the basic of negative interest. By inverting who pays who.
Surely you avoided that negative oil barrel price events showing how much those smart ads financial boys can be more stupid than common sense.
After that you talk about unemployment which was not the topic here and is irrelevant in this talk. When there is free money you don’t need to fight to get it. I hope this is something easy to understand. Most of the time the free money is injected into market to buy back stock and keep value at top. In order to fake the reality that most company aren’t sustainable without this free money.
You should read about John Law and the conclusion of the first attempt of printing money for free…
But if not, then you are welcome to stay in your fantasy financial bubble and keep your sarcasm to your other brainwashed mates.
For information im an it guy working in financial institution for 20 years. So everyday I meet smart ass finance boy with high perception of their smartness while failing most of the time to beat the market.
I was in front line with my computers in a high frequency trading service, when all my traders bet on remain, and loosing millions of euros the day England choose to brexit.
You talk like an idiot, an ideological idiot. That’s all.