# Japanese interest



## deadmoose (Oct 30, 2011)

I knew my savings account is a bad investment. At least it isn't in Japan...

http://www.msn.com/en-us/money/markets/boj-introduces-negative-interest-rate-to-boost-economy/ar-BBoQqa2?ocid=ansmsnmoney11


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## NewBerlinBaler (May 30, 2011)

This sounds bad but if Japan is really experiencing deflation, then there's really no negative impact on savings accounts. What is deflation? The price of (consumer) goods is falling, If some product you're thinking of buying will cost less next year than it does today, why not wait for the price to drop? Even if you'll have less money to pay for it then.

Depends on the (positive or negative) interest rate versus the inflation/deflation rate.

In the United States, you can earn around 1% interest in a savings account. However the inflation rate is way higher than that - despite what the Fed keeps telling us. My cable bill has gone up 25% in 9 years.

The Japanese may be better off than we are.

Gary


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## Teslan (Aug 20, 2011)

NewBerlinBaler said:


> This sounds bad but if Japan is really experiencing deflation, then there's really no negative impact on savings accounts. What is deflation? The price of (consumer) goods is falling, If some product you're thinking of buying will cost less next year than it does today, why not wait for the price to drop? Even if you'll have less money to pay for it then.
> 
> Depends on the (positive or negative) interest rate versus the inflation/deflation rate.
> 
> ...


got to search high and low for that 1% savings account anymore. I have one, but my other one is way below that.


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## glasswrongsize (Sep 15, 2015)

NewBerlinBaler said:


> This sounds bad but if Japan is really experiencing deflation, then there's really no negative impact on savings accounts. What is deflation? The price of (consumer) goods is falling, If some product you're thinking of buying will cost less next year than it does today, why not wait for the price to drop? Even if you'll have less money to pay for it then.
> 
> Depends on the (positive or negative) interest rate versus the inflation/deflation rate.
> 
> ...


The quantitative easing (or printing money to make the existing money worth less...or inflation) is used in-part by a gummint to manipulate and lower the value of its own currency so that their debt is worth less.

Japan tried to cause inflation in 2013 and is considering it again in an attempt to thwart inflation.






A gummint can only "prop up" it's economy for so long until it seeks a more organically-accurate level, or even an over-correction. In the past, deflation has been an indicator of upcoming hyper-inflation. Inflation, caused by making money worth less and not by demand, is a trick balancing act in which most gummints indulge but few survive (for the long haul).

...and I dang sure ain't an economist and have very poor and limited understanding. Just my ponderings.

73, Mark


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## rjmoses (Apr 4, 2010)

I am so tired of all this government nonsense that I can't even work up a moderate rant about it anymore.

The "obvious" cure to the aging baby boomer Social Security and pension plan dilemmas is to make the payment worth less (or worthless).

This is happening gradually by doing such little gimmicks as "adjusting" the CPI calculation by taking the price of food and energy out of the calculation. So, as long as you don't eat, don't go any place and don't need to stay warm, there is no inflation. 0% interest rates is another gimmick.

Slip those little "adjustments" in one by one and nobody really notices. And those who do notice, and understand what is happening, are too few to do anything about it.

After a few years, those SS and pension payments just don't cover anything anymore because the COLA doesn't cover the cost of living.

And the goods news, nobody gets blamed. Every politician is off the hook. ("Not me!" will be their favorite campaign slogan.)

Ralph

I'm tired. So tired. So very, very tired.


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## luke strawwalker (Jul 31, 2014)

rjmoses said:


> I am so tired of all this government nonsense that I can't even work up a moderate rant about it anymore.
> 
> The "obvious" cure to the aging baby boomer Social Security and pension plan dilemmas is to make the payment worth less (or worthless).
> 
> ...


That and raising retirement age... they've already started that...

I've known since I was 16 years old and reading economics books from the library that my generation would never receive the first penny of "Social Security"... the system has been broken for 30 years and it's just now that most folks are figuring it out.

I'm 44 now; by the time I reach "retirement age" the system will be SO broke that they'll have done all the little tricks you mentioned PLUS raised the retirement age to 80 or something, and by then, 90% of the people even eligible to receive it will be DEAD or will croak within a few years... Therefore just a handful of recipients to make payouts to...

Later! OL J R


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## rjmoses (Apr 4, 2010)

Don't forget the little gimmick on SS surplus funds: They can only be invested in US Treasury bonds.

Anybody know what that means? Anybody? Anybody? Mr. Buehler?

Ralph


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