Posted on 09/04/2016 12:30:58 AM PDT by SaveFerris
Negative interest rates are spreading like a virus. Central banks in the Eurozone, Switzerland, Sweden, and Japan all have below-zero policy rates. “NIRP,” as economists call a negative interest rate policy, is a desperation move—but the only move those central banks have.
The Federal Reserve hasn’t followed—yet. When the next recession strikes, I believe Janet Yellen will choose to break the zero lower bound. The rationale was laid out in Jackson Hole. Look behind the headlines and you’ll see the Fed already preparing for NIRP.
In theory, negative rates should encourage consumers and businesses to spend more freely and stimulate growth. It hasn’t worked out that way. NIRP just punishes savers and makes everyone miserable.
(Excerpt) Read more at yahoo.com ...
Americans don't want nor need more TAXES, so what happens to the banks when people withdraw their money? The moronic liberals never do think that far ahead. LOL
Don’t say “tax” - you’ll get John Roberts all excited ......
I know, I know.....but what else can such a “fee” be called, if not a “TAX” ?
And F Roberts and his illegally adopted brats!
Yeah, I’m sure they’re loving it.
You can bet they’re trying to figure out how to get into all kinds of piggy banks.
Gonna go watch some TV and grab something to eat - thanks for those prayers again - hope you’re hanging in there.
They got something on that boy. He sure looked guilty there in Malta.
They have had de facto negative interest for years.
It’s called “The Fed Discount Rate.”
Yet another scheme to steal more of our money
Doesn’t negative interest rate means the dollar is getting stronger?
I thought that high interest rates mean the value of the currency is getting weaker, so neg. int. rates would mean the opposite, wouldn’t it?
Exchange your deposit accounts for currency now if you think that this is coming.
Marvin Goodfriend’s pro-NIRP paper mentioned in the article says that banks would stop giving out large-denomination bills and/or charge you for withdrawing your money as currency.
The other option mentioned is abolishing paper money in order to hold your money hostage.
I prefer the option of Marvin Goodfriend+Rope+Tree as A Warning to Others who are considering this madness, but we probably won’t get that wish filled.
There's always taxes, for the government to up, but you can't get blood out of a stone!
Banks, like hospitals, until recent memory, were feared and disliked by many Americans! The old jokes about hiding one's money under the mattress, was based on fact!
You'll have FRmail in a few minutes. :-)
And higher rates on loans just means that it costs the loanee MORE money to borrow; not anything at all re the strength of the currency!
Deflation while good for the consumer is bad for the economy. Imagine owning a store and buying 1,000 worth of goods and by the time you sell them you can only clear 990.00. As the price of goods goes down so does the money supply. This k of supply and dreams. There is a demand for currency, but a limited supply. This leads to hoarding and eventually scarcity of goods
There’s something ILLEGAL about his and his wife’s adoption of their kids. It is also very possible that there is something else very wrong that he is trying to hide.
Let's see, should I put my money in the bank where the bank/government steal it - or in my home safe where my principal is preserved?
THis is a tough call! LOL.
They can take it the way they've always taken it in the past - inflation.
Inflation amounts to an economy wide tax with the brunt borne by those least able to pay.
The only way to defeat it is by repudiating the whole Fed/Fiat Currency system and return to hard assets (gold/silver) or currency backed by a fixed amount of same.
Just make certain that the safe is fireproof and able to be screwed into a wall or floor from the inside of the safe! And yes, we have one. :-)
You can withdrawal your deposits. But only for the new orange currency that redeems at the rate of ten greenbacks for one orange slice. Greenbacks are being recalled at that rate universally. It will cripple the drug world.
Governments don't "cause" inflation by waving a magic wand. OTOH, many government policies DO cause inflation, which we DO have and have had for a very long time!
Depressions and some Recessions have caused prices to go DOWN in the past. Not so this time around.
I could go back to the horrible Depressions of the late 19th century, or even the ones in the early part of the the 2oth century, but anyone in their 50s or older knows what things used t5o cost re what the cost now and see just how VERY bad the inflation is right now!
In the 1950s, penny candy DID cost 1 penny a piece. Candy bars cost 5 or 10 cents. And sneakers did NOT cost $200 or more !
Yes, some things have gone down in price...long distance phone calls, for one and some electronic stuff like air conditioners.
But most things, especially food, clothing, and gasoline have gone waaaaaaaaaay up in price.
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