Posted on 04/14/2016 2:27:43 PM PDT by Sopater
The concept of negative interest rates — in which lenders have to pay to lend money or to invest — has gotten a big boost from the International Monetary Fund. The IMF stated this week that world central banks should move to negative interest rates because the extra monetary stimulus would ease lending conditions. Or so they claim.
José Viñals, the chief financial counselor and director of monetary and capital markets for the IMF, argued for negative interest rates in a research paper, stating, “Although the experience with negative interest rates is limited, we tentatively conclude that overall, they help deliver additional monetary stimulus and easier financial conditions, which support demand and price stability.” Stripped from its statist jargon, what Viñals is saying is that world financial elites want to inflate currencies to cause even more borrowing and lending, partly to keep prices from falling.
(Excerpt) Read more at thenewamerican.com ...
They also want to combine it with outlawing cash, so people have no choice but to keep their money in the bank. Welcome to corporate serfdom.
ZIRP and NIRP (zero and negative interest rate policies, respectively) are simply methods to tap savings. Others are money printing or direct levies.
Savings are tapped with ZIRP and NIRP because inflation rates are positive, meaning that saved money loses value under these policies. It’s a “cash is trash” situation, which could turn into a “cash is king” situation when rates rise. But, that could take quite a while.
“...lenders have to pay to lend ...”
Sounds great! How much do you figure I can make on my mortgage?
Oh. I see.
False. Lenders would flatly refuse if that were reality.
Lenders will get paid a premium by the Fed to lend to the serfs at 'negative' rates.
The Fed in turn generates endless 'cash' from thin air which the serfs also get to pay for.
(Nice game if you get to be a primary player.)
The little guy gets negative impact on savings, which, as has been pointed out, leads to the elimination of cash, which is the real goal.
Take every extra bit of paycheck and apply it to principle on the home loan if they start this crap.
Can you say “666”
“The IMF stated this week that world central banks should move to negative interest rates”
What the IMF is saying here is simple: Let the old people’s savings and liquidity pay for every countries deficit spending.
Macro economic and banking issues could get outta control quicker than one may think.
5.56mm
Time to stop using banks as a money storehouse.
Just keep enough in to cover certain bills, take the rest ut and get a good secure safe.
This is potentially very bubbly towards financial assets.
The next big steal.
A cashless society would make drug deals almost impossible. Are prepaid visa cards traceable?
Not a negative interest rate. Confiscation.
Weren’t the big banks given a whole slew of money back in 2009?
I’d like some of that cash...just for a while, you understand.
There you have it. That will be the eventual outcome.
Where there is a will, there is a way. Already, lots of meth addicts barter ingredients for finished product, since the cook can’t buy enough without scrutiny.
And other street items have a barter value: food stamps, stolen credit cards, stolen card numbers, stolen merchandise, etc.
There are already a lot of phony babysitting schemes out there for tax fraud...a drug dealer could do the same...or could become a fake landlord, fake car rental, fake xyz business.
You cab’t even rent a car in the UK, now, unless you have a credit card. Debit not accepted. And, from what I understand, they no longer accept cards without a ‘chip’ at the till.
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