by Martin Armstrong, Armstrong Economics:
The IMF has continued to assume that the zero-bound on interest rates can be a serious obstacle for fighting recessions on the part of the central banks. The IMF maintains that the zero-bound is not a law of nature; it is a policy choice. The latest in the IMF papers argue that tools are available to allow central banks to create deep negative rates whenever needed to reverse recessions. They claim that maintaining the power of monetary policy in the future to end recessions within a short time will require deep negative interest rates.
It is really quite astonishing how these people with NO REAL-WORLD EXPERIENCE keep trying to maintain the Marxist-Keynesian theory when more than 10 years of negative interest rates have failed. This is the same theory that dominated medicine for so long. They assumed there was a toxin in the blood, so the cure was to bleed you. If you died, they assumed the reason was that they did not bleed you sooner.
These idiots fail to comprehend that negative interest rates have wiped out pensions. The instruction manual for life was to save for your retirement to be able to live off the interest of your savings. The problem was, those days were based on 8% interest rates. Moving negative will not force people to spend, it merely bankrupts the people.