Posted on 09/04/2016 12:30:58 AM PDT by SaveFerris
And now you can see why they are so keen to eliminate cash. How do you take digital money out of the bank and hide it under your mattress?
I cannot grasp a negative interest rate. So I could theoretically borrow $100,000 and pay back $90,000 over 30 years? I don’t get it.
What about checking accounts, as that is all I have, rest of my little bit of money is tied up in Annuities, which are tied up in Trust funds in case of death. I maintain the checking account to pay bills and and for my SS check. Use Discover or Visa for purchases under $10. Don’t carry very much cash. Tip money or under $5 purchases type.
Savings accounts or CD’s don’t make enough interest to be worth while since DUMBO became president.
Remember all the article about Americans not saving enough? How is NIRP going to help?
Punish savers. Reward debtors.
Eventually, this economic house of cards will fall.
When you’ve got negative “investment” (aka “throwing good money after bad”) in many government programs, you get negative returns.
“,,,so what happens to the banks when people withdraw their money?”
The Feds will NEVER allow a run on banks. They’ll suspend withdrawals, close banks (bank holiday)and limit amounts that can be removed by transaction.
If you have not already removed your money (or a substantial portion of it), and converted it to barter bait, you will be left holding the (empty) bag, I’m afraid.
It may not only apply to money in banks. How would you like below zero rates on your retirement savings accounts?
Even the slightest rate hike balloons interest payments on the national debt.
Forget about anything substantial.
Indeed it will. The cure is a significant drop in taxes including capital gains. Government spending has to be cut drastically. That would be a start.
Follow up comment self edited for all of the profanities hurled at the socialists...
Invest in ammo NOW
In theory, negative rates should encourage consumers and businesses to spend more freely and stimulate growth.
All of that international stuff is about how the global economy is doing....for the globalists. In the US and probably elsewhere, what's happening is not only is the middle class being destroyed, it can never make a comeback. If savings in the bank can't grow, there's no way to prepare for the future, including for retirement.
People are becoming irrelevant as it takes less people to run the economy, and there's an unlimited source of cheap labor to undermine wages for the jobs that exist.
The only solution is for the global economy to collapse. It won't be pretty when it does.
That would be skittles from the unicorn, wouldn't it?
No, the negative interest rates are for when banks and government borrow from you. Your interest rates will always be positive!
Yes, some things have gone down in price...long distance phone calls, for one and some electronic stuff like air conditioners.
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Through competition.
Back in the 60$ when I was in the military, once a month, I’d feed quarters into the pay phone, usually $20 worth to talk to my future bride for one hour. One fifth of my then monthly income on one phone call.
Thankful that those monopoly days are gone, not due to government interference but because of the invention of the cell phone.
There’s at least one picture around here somewhere.
There will be a run on bank deposits, more barter for services, and a general reduction in economic activity.
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Two years ago, I had my driveway paved, I found a contractor who had a good reputation and he gave me a price of $7,000. I told him I was willing to pay cash and not even ask for a receipt. He immediately gave me a 20% discount.
Illegal? Sure it is but I’m happy, the contractor is happy, I got a good driveway, the only entity not happy is the money grubbing lousy government.
So with a “negative interest rate,” the bank pays ME $15.00 if my balance falls below $500.00?
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