More like, negative income tax 😉 #UBI

@TimDuy @dandolfa @cullenroche any thoughts on the question 👆🏼?

Negative rates at the sovereign level compress spreads and create incredibly low sub-sovereign rates (State, Provincial, etc. rates) where debt levels are much higher as a % of GDP already and where pension liabilities in the West primarily reside.

That they're the single biggest accelerator of inequality

It made it possible for many businesses to survive that would not have been viable in a normal interest environment.

Keynisianism is wrong.

If you're thinking about returns and risk, the appropriate measure is "real rates", not "nominal rates." The objective should be to provide real after-tax rates of return, not nominal. This is the increase in purchasing power or consumption capabilities.

Traditional measures of inflation / economic activity obscured by the rise of digital banking and software/services allows us to reach significant inflation before the fed can respond

I wonder if near zero rates are close to real market rates because we have entered a time when there is so much accumulated wealth that capital is no longer the scarce resource. Instead productive uses of capital are the scarce resources. Not sure tho.

People rather accept negative returns on govies than running the risk of defaulting banks. People trust govs over banks when it comes to capital preservation. Bitcoin fixes this.