- 05 Sep 2020 22:45
#15117805
How does the fed factor into all of this?
Personally I would bury all my money in my backyard if this every happened.
Senter wrote:Ok guys, this is a hypothetical scenario question. I'm interested in data, ... in facts and probabilities, ....--not partisan nonsense.
Let's imagine for a moment that the US government decided to nationalize the banking industry. All banking in the US, top to bottom, is now owned and operated by the government, as is all loaning processes.
The decision is made to eliminate all interest being paid on savings and other accounts that previously paid interest to the depositor. Also, all loans are to be made interest-free. All loans to businesses and consumers alike, are "zero-interest" loans. If you want to borrow money to buy a house or a car or a business (or anything else) you fill out the usual application, the application is evaluated, the money is loaned against collateral, and the loan is completed.
What might be the effects and/or results of such no-interest arrangements and why? Maybe inflation could be kept close to zero?
It occurs to me that in the context of world-wide banking connections it may not be possible for this zero-interest idea to be done unless it were to be a world-wide change followed by all.
Comments?
How does the fed factor into all of this?
Personally I would bury all my money in my backyard if this every happened.
I can think of 11780 reasons Trump shouldn't be president ever again.