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By Al Schumann on Monday September 7, 2009 08:13 PM


In July, the Riksbank fixed interest rates at minus 0.25 percent on certain deposits kept by the commercial banks at the central bank.

With the negative rate, banks are effectively fined if they hoard unused funds in the central bank's coffers -- a way of punishing them for a conservative lending policy at a time when the authorities want to ensure the economy gets easy credit.

Banks are usually paid interest on these deposits.

"It's better for a bank to be active... (rather) than just sit on the money," Riksbank governor Stefan Ingves told AFP.

In honor of Labor Day, I recommend a penalty rate of at least negative 10%. Market forces, my friends, would take care of the rest.

Demurrage has a noble function. Not least in the creation of incentives for long term, labor intensive, fixed capital investments. And when the idiot rich start hoarding and imposing punitive scarcity, a negative interest rate gives them a much needed fillip.

Owen raises an important issue:

stefy has henry fonda eyes now don't he

that prim startled look
of ferocious anality

For comparison, Mr. Henry Fonda.


The side by side, to assist clarity.


What do you think?

Comments (10)


" in July, the Riksbank fixed interest rates at minus 0.25 percent on certain deposits kept by the commercial banks at the central bank."

a major road mark

on to a fully indexed national balance sheet

capital taxes and interest and ground rent taxes used in one unified algorithm
dynamic as satans jitter bug

Al Schumann:

I do love me some capital mobility. What with idle capital accumulations being the tools for Satan and all, it's reasonable to call demurrage and capital taxes and interest and ground rent taxes the Lord's smiling solution.


indexed ???
--in fact of course two way indexed
( to be strictly class neutral) up and down
no zero floors here either --

but indexed to what citizen paine???

to the ratio of change in average value added per hour and average hourly wage

get my gimmick fellow pink panty types ??

so how would it work exactly ??

very very intricately


the mission ?

capture the free corporate surplus ggenerated
by job market rent sump

bare necessities

think efficency wage


the exploiter max is still incentivized

---hoorah for gains from enterprise eh ??---

while the rentier class distributes
evenly amongst themselves
the total socialization off set
uncle sam aka "hammer of the rentiers"
hizseff extracts
thru interest rate like
confiscatory tax blow backs

wagery gets it back as public goods

something even for the nanny state goo goos


the only meaningful social science
is mad social science


my verge of sleep
clithonic love demon
lady maggie thatcher


in her living flesh years
liked to talk about "honest money"

ahh i can see her saying now
oh that glare of superiority!!!

well here's a way to keep money honest
and still clip the wealth coupon to society wide specifications


jobs and joy thru usury update :


"The Federal Reserve reported Tuesday that consumers in July ratcheted back their credit by a larger-than-anticipated $21.6 billion from June, the most on records dating to 1943. Economists had expected credit to drop by $4 billion.
July’s retreat translated into an annualized decline of 10.4 percent. That followed a cut of $15.5 billion in June, or a 7.4 percent annualized drop, and was the most since a 16.3 percent decline in June 1975.

The latest cut still left total consumer credit at $2.47 trillion.

Wary consumers and hard-to-get credit both factor into the scaled-back borrowing. But economists are split on which force — lack of demand by consumers or lack of supply from banks — is having the bigger influence.

“It’s really a tug of war,” said Mark Williams, professor of finance and economics at Boston University and a former Fed bank examiner. “It’s true that consumers are being more responsible, saying ’I don’t really need that extra credit card,’ but it is more related to banks clamping down on lending.” "

"a report earlier this year by the company that produces the most widely known credit scores found that companies slashed limits for an estimated 58 million card holders in the 12 months ended in April, even though a high percentage had good credit scores when their limits were cut
“As great as the clunkers program has been, it’s tough to head out and buy a big ticket item when you don’t have a job,” "


stefy has henry fonda eyes now don't he

that prim startled look
of ferocious anality

Son of Uncle Sam:

Hmmm -.25%,...
I've been dreaming of this, it's the first sign ... soon it'll be Two men enter One man leaves.

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