Posted on 01/29/2016 3:27:36 AM PST by TigerLikesRooster
Well, that’s for the bigwigs dealings. If it were a true negative interest rate, you’d get cash back for every loan you took. That’s something they’d probably not want, but it’s possible.
In this case, it appears they may be on the borderline to do just that. At the very least, you have nearly 0% rate loans. It’s possible they’d go slightly negative and you’d be paid on your loan.
There have been plenty of reports that the middle class is on its way to extinction in the US. The strength of the US and most any vibrant economy is a confident middle class.
The rate is for deposits, not loans.
This is eventually coming to American and no one should be surprised—it’s all part of the plan. Negative interest rates solve quite a few problems for the Government. The biggest plus would be that they, literally, make $$ for going into debt. It would also goose the average Joe into moving their $$ into either stocks or corporate/municipal bonds. This is also part of the plan, as it would prop up asset prices.
Most people will be mad as H@ll to be charged a percentage to keep their $$ in the bank, but what choice will they have if they want to preserve their wealth? Make no mistake, NIRP is a back door tax.
So, following this to its logical course, a time comes when all our cash is in our homes, under the mattress, next to our gold. Then one day, the government makes the current currency obsolete and gives us 2 months to turn in the old bills for the new ones after which time the old ones are worthless. BTW, the exchange rate will be $1,000 in old money for $10 in the new bills. At the same time, we will be commanded to turn in all gold under threat of confiscation without compensation after 6 months, with special, armed recovery teams with sweeping powers of intrusion waiting by the phone of the anonymous tip line.
Think it can’t happen? It has been done before.
Except for the Government. Under NIRP, the Government will make $$ on its bonds. In a deflationary environment, people will be forced to pay a fee to preserve their cash.
With NIRP, people will also be very tempted to stuff their $$ in a matress.....or a safe.
Basically, this will be a disaster for the Economy. However, it will give Government more running room to spend and redistribute wealth. Which is the main goal.
Cash beyond the basic balance will be shipped offshore via tokyo offices of american or singapore banks
There are 300 million guns in U.S. I doubt that things will be so easy for gum-int.
Instead of fixing their problems, they kept kicking the can down the road, starting about 1991. They’ve been stuck in the pattern ever since.
The US adopted the same basic policy in 2008.
I would like to agree with you, Tiger, but in USA, during the depression, our gold WAS called in, allowing us only 1 ounce. And, the money WAS exchanged for new bills. Not at a 100 to 1 ratio, I admit but it was in Venezuela and other countries recently. In addition, the ratio was increased after the people exchanged the first $100 thousand. Instant equality for everyone as we all become broke. Nationalize the real estate and the job is complete.
Like Amazon make up the loss on volume. Japan is our future. They played the game longer with a high national savings rate and strong export market. Their elderly population is needing their savings back and exports are no longer driving the economy. What is their debt to GDP now something like 240%? at least the Japanese people will not be in the streets looting and burning.
No this is a negative charge against savings with a 2 tier system.
Hold a large balance and it will be like a Mutual fund taking x % for management services.
I know. Remember those nice lines after the Tsunami when everyone was waiting for food ns water?
Contrast with the Superdome after Katrina.
Digital money as in credit card use- where no physical cash changes hands.
I know people who do not use cash money for anything- either credit card or debit card for all purchases.
Actually using cash money - one needs to actually think about purchasing power.
The advent of direct deposit is another mark of the beast in my opinion. Again if you do not actually ever have actual money- just goes into account where you then remove using debit card or credit card.
Also the ELF for paying billsanother one- setup the payment then it just goes out of the account.
Why is this shocking?
Japan is entering it’s third decade of these sorts of monetary games.
That’s been the plan.
“Actually using cash money - one needs to actually think about purchasing power.”
Yes. I agree. Kinda like why they use chips in lieu of money in casinos. You don’t think of a chip in terms of a dollar—just a chip.
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