The Fed can only influence short term rates. So I guess the answer is, yes. But isn’t that happening anyway? Inflation hovers around 2%, and rates on savings say, 0.02%. So real net interest would equal -1.94% over one year.[/quote]
And that’s what confuses me…I’m not exactly sure about EU economic stats right now, but the EU is the largest economy in the world IIRC.
Assuming the EU was doing some level of QE – what does that say about the state of the EU economy?
I don’t think even Japan did NIR (negative interest rates).[/quote]
instead of steadily eroding savings, wouldn’t it be more effective to have it be done randomly and in larger chunks/ Anyone who leaves cash in the bank for over 6 months, say, can randomly have a 2% chunk sliced away, say up to 3x a year. it’s done randomly by a computer. the money goes toward military operations to ensure dominance of the currency. this way, people will go out and spend it all..
