Monthly Archives: September 2014

In the spirit of deflation

A few days ago the European Central Bank lowered its benchmark interest rate to an all-time low of 0.05% – practically zero. A fear of deflation led to this move

Somehow I just cannot imagine that the banking industry will use this all-time low to approve more credits in the business industry. Why should they? – Analysing, controlling and administering credits are time-, cost- and risk-intensive. It seems much more interesting thus to invest in a low-risk paper that now can be bought at practically zero cost. – Great.

Why then does the European Central Bank go for such a move? – Politics? – Psychology? – I haven’t a clue. More interesting, though, is taking a look at the fear of deflation. Continue reading

In the spirit of sitting around the kitchen table

SMS, e-mail, phone, chat-rooms, good-old-fashioned letters: There are so many different forms of communication these days that we sometimes forget the most obvious one – such as sitting around the kitchen table with a friend or family member.

The other day I had lunch with a very dear and old friend. As we were talking about this and that she happened to mention how she had started to go and visit her parents every Thursday morning for a coffee and croissant around the kitchen table. Continue reading