News for hackers. Stuff that matters.

A comment on 5000 Years of Interest Rates. Parent comment

Re:5000 Years of Interest Rates by twcooper on Friday September 25, 2015 @04:31AM (#10276940)
I think you missed the section in Algebra where they teach the time value of money. Nobody is going to give up money today for the same amount at a future date.
[ Parent | on HN ]
Re:5000 Years of Interest Rates by titzer on Friday September 25, 2015 @04:55AM (#10276999)
Depends on if it is possible to lose that money in the mean time. If there are lots of robbers in your neighborhood, it might make sense not to have a lot of cash under your mattress.
[ Parent | on HN ]
Re:5000 Years of Interest Rates by twcooper on Friday September 25, 2015 @05:37AM (#10277122)
Okay, but that's not what he said:

>An investment with risk so low to survive two millennia can safely yield 0%.

If risk-free assets garnered 0% interest rates, then the U.S. Treasury would not have to pay a real rate of return on its debt.

[ Parent | on HN ]