Why is everyone against low interest rates all of a sudden?

It does more harm than good, a true sign of a shitty economy

Plus, I expect people have taken on massive amounts of debt expecting the rate to not increase, and when it does they will default.

Then you would agree that the solution is to keep rates in the -0.50 to +0.25% range.

Borrowing money is bad...save and pay cash for everything

Fuck no - 5 to 10%

This is not feasible in a globalized world. You should know that, Brief. But from the looks of thing, you don't know much around here.

LOL, I teach people to live debt free and become millionaires every day, tell me I don't know anything

You're a fucking idiot. The issue is integrity and until that issue is addressed and fixed, nothing will get better. Nothing has any integrity anymore, we hear perpetual lies from presidential candidates, bankers lie, central bankers lie. the judicial system is corrupt, the monetary supply is corrupt, the media is corrupt, even the cost of capital is corrupt, in fact everything's fucking corrupt and the people fucking know it.

You can set IR's at +8% and it still won't give anyone any confidence that this shithole of a system is fixed, on it's way to being fixed or will ever be fixed. Everyone with 2 brain cells to rub together knows this system is on the brink of collapse and all the lies in the world won't save it.

So... stick your negative interest rates up your negative pipe.

This is a very pessimistic portrayal of our world leaders and economy. You're also not giving any credit to the people that have elected them to represent us. Two wrongs don't make a right.

Do you sit them down in a classroom like atmosphere and tell them that? Also, what is the percentage of millionaires you create and what do you charge to make them one?

There's nothing pessimistic about it, it's realistic and if you can't see it, then take off your rose tinted glasses. I knew something was wrong in 2005 and predicted this financial crash in 2007 before it hit. Since then the truth has been obfuscated and instead of fixing obvious problems in the financial sector and in government, they just hogtied the media so they stopped reporting it.

"World leaders" - Ha! What like Her Merkel who's single handedly destroying Europe? Or perhaps our friend Mr Juncker who wants an EU army to fight Russia? Or perhaps all the western leaders for meddling in Ukraine and antagonising Russia or 7 wars started by the US and the "coalition of the willing" since 2001. World leaders can fuck off, they haven't earned any credit. Respect is commanded not demanded!

2 wrongs can make a right, now fuck off.

I'm a financial counselor not a lecturer. Not everyone wants to become a millionaire, many just want to get out of debt, save for college, or plan their retirement. I help people make their financial dreams come true no matter how big or small.

It's great if you are a banker.
It sucks if you are a saver.

Higher interest rates help the rich get richer at the expense of the poor. What the banksters want the banksters get. They'll even spin it in such a way that you think it's a good idea.

Another fucking moron. IR's don't distinguish between the rich and poor, a rising tide lifts all boats.

Bring on rising rates, 15% would be great for me and the world's pensions.

I'm sorry my friend but your missing many pieces of this puzzle and so your conclusions are completely skewed.
A few things to note: they can't lift rates in any meaningful way. Simply can't so it isn't a great plan cooked up by the central banking geniuses it is a requirement forced upon them after being so fiscally irresponsible for soooo long which has caused countries to be carrying massive debts that are unplayable. For the USA lifting the rate a mere 1% would cause crippling interest repayments for an economy that is obviously showing signs of weakness.

Yes mortgage repayments are lower and people can borrow money cheaper but savings customers such as elderly are sinkimg due to not getting enough on interest to maintain their standard of living and a chipping in to their capital and thus the problem gets worse and worse.
Another point... We are not "better off" now that in the past. Yes tech gives that feel good feel like flat screen TVs etc but rents and house prices are crippling many and it's worse that ever on a disposable income front for the majority.

Mortgage market has gradually moved back to their old ways, increasing age limits and governments desperately trusting to fight of deflation (which makes their horrific debt much more difficulty to maintain) by setting of Ponzi schemes such as Help to Scheme in the U.K. which gives taxpayer money to people as a bonus to go towards a deposit for a property. It's sheer desperation rather than good fiscal policy to keep people buying at current ridiculous levels. Anyone buying now should be concerned with why these schemes are even needed ame it's simple ... WE ARE IN A BUBBLE AND BUBBLES BURST.

Yes you could go getting cheap loans and cheaper rates on mortgages. But I'd rather have a cheaper house with a higher rate than a low rate on a massively overpriced property... and your talk of negative rates is simply you giving an unsecured loan to a bank and paying the bank do this. They then take your generous unsecured loan and fee and use your money which they then use and make bets on the stock market for themselves to become richer. For the pleasure of this In negative rate world you pay them to enrich themselves. The entire system is corrupt and I would seriously advise people against racking up debt on anything right now.

the ONLY REASON they will lift rates is to SAVE the banks and insurance companies who depend upon a steeper yield curve.

I say fuck the banks and insurance companies.

and fuck usury.

Interest is a key part of any retirement plan. Low interest rates are literally killing the elderly. It's FORCING them into the stock market just to earn a measely 1 or 2%.

Yet if interest rates go up, we wont be able to pay the interest on the national debt (default).

That is the corner we've painted ourselves into.

It means the banks have two options, take your money as negative interest.

OR

Lend lots of people money at low interest.

It means the banks are failing.

IR's WILL rise, if not by the hand of central bankers, then the markets will cause rates to rise and will be the death knell of the financial markets. The central banks can only influence the long end of the curve, they DON'T control it.

.
... OP ... you do realize there are people who live off the interest of money they have set aside ... right? ...
.
... when rates are almost none existent those who are living on the interest now have no income ...
.
... I know retired folk who have had to find jobs because they can no longer live on the interest ...
.

The looming pension crisis over the next 12+ months will force rates higher at some point.

Who can afford to pay cash for a house? You gotta be making at least a 6 figure income to buy a double wide trailer outright.

I agree though to a point. People are forced to develop good credit just so they can rent an apartment and get some dickbag rich.

So people have to buy small purchases to keep their score high. I paid off a car loan a few years back and almost a year later took out another car loan and paid it off in about 6 months.

2 years later I applied for my car loan I'm paying on now and to my surprise I was turned down. I paid cash for everything for 2 years. I have zero credit cards. Apparently credit is one of those things that you use it or lose it. I had a zero credit score in April. Can you imagine how pissed I was? I needed a co-signer.

The credit system should be abolished or at least greatly modified. Why should someone's credit score affect them getting a job?

Good on you Brief.

Borrowing money is bad...save and pay cash for everything

That's as true today as when cavemen were swopping purty shells for tusk tools.

I'm so far off the credit crunchers' databases that I can't get credit! I simply do not exist to them. I save up and pay cash, always have done.

It really does work best.
And it's the only way the global economy will be mended finally.

I paid cash for my houses...rent cheap and save, but I've always made good money too, that does certainly help.

Couple years ago when I bought my last new car, I wrote a check for it. The sales guy tried to get me to finance it to save a thousand bucks but I have no credit. He ran my history and all it shows is the properties I own, but I have never borrowed or made payments on anything ever!

Last Edited by BRIEF on 09/15/2016 01:01 PM

youre clearly a retarded shill

There is more money to be made with a boom and bust economy than one that is steady.

I think that is probably you that are unaware of how 'interest' works. Interest rates are charged based on 'risk'; predominantly the risk of not being paid back the principal of what has been lent out. Interest on government bonds have historically been in the 5% range and much higher especially in the '80's. Also, when government borrowing has crowded out private borrowing, like in today's effed up financial world, rates were much higher.

In order to let the government run the massive deficits that they have for the last decade, the fed has artificially kept the rates low and purchased debt with money created out of thin air. When the 'crisis' started in '08, the fed's balance sheet was $800 billion, it now stands at over $4 trillion!

Insurance companies and pension funds are limited to the types of investments that they can purchase and generally stuck with AAA bonds and not stocks, as stocks used to have risk (the fed has convinced everyone that there is NO risk in the stock market by using HFT programs to never let the market fall - they learned their lesson in '08-'09 - so they can make sure the mantra that stocks NEVER go down, just like home prices!)

With interest rates so low, pension funds and insurance companies will be blowing up and soon! They will never survive a negative interest rate environment. What idiot would put money in a bank in order to receive less?