P!
Man I wish I had big cash to put into a negative rate. :(
This makes absolutely no sense whatsoever as fiscal policy. Or as any other kind of policy, for that matter.
Maybe the problem is that people have become convinced that government is all-powerful to control the economy, and it just isn’t true. So the government affects the economy the only way it can, negatively, and people think it knows what it’s doing.
Maybe they should invest in aircraft carriers.....
Wow! A negative interest rate?? That’s insane. Hope they have lots of coffee cans in Japan so people can deposit their money.
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.
Why is this shocking?
Japan is entering it’s third decade of these sorts of monetary games.
I wish I had the money to go to Japan. You are now getting over 120 yen per dollar.
In shocking move, Japan adopts negative interest rate as deflation fight faltersThe Bank of Japan unexpectedly adopted a negative interest rate policy Friday, stunning investors with a move aimed at shielding the country's sluggish economy from volatile markets and slowing global growth.
The BOJ said it would use a three-tiered system to charge for excess reserves parked with the institution, an aggressive policy pioneered by the European Central Bank that penalizes banks for holding cash and encourages them to loan it out.
... [ snipped yada yada yada ] ...
And some folks *still* ridicule Andrew Jackson.