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The Fed may be preparing for the unthinkable — negative interest rates in America
Yahooooo ^ | 12 hours ago | John Mauldin, Yahoo Finance Contributor

Posted on 09/04/2016 12:30:58 AM PDT by SaveFerris

click here to read article


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To: 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?


41 posted on 09/04/2016 4:47:53 AM PDT by Sirius Lee (If Trump loses, America dies)
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To: SaveFerris

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.


42 posted on 09/04/2016 4:48:43 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: nopardons

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.


43 posted on 09/04/2016 4:51:37 AM PDT by GailA (If politicians won't keep their promises to the Military, they won't keep them to you!)
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To: TheNext; LukeL
And if there is deflation throughout the economy, the $990 received should buy more. Greater purchasing power. Problem solved. 😊
44 posted on 09/04/2016 4:52:09 AM PDT by 4Liberty (Can't WAIT to start saying -"TRUMP'S FAULT!!")
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To: SaveFerris
Time for a ...


45 posted on 09/04/2016 4:54:42 AM PDT by 4Liberty (Can't WAIT to start saying -"TRUMP'S FAULT!!")
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To: Jimmy Valentine

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.


46 posted on 09/04/2016 5:06:02 AM PDT by Flick Lives (TRIGGER WARNING - Posts may require application of sarcasm filter)
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To: SaveFerris

When you’ve got negative “investment” (aka “throwing good money after bad”) in many government programs, you get negative returns.


47 posted on 09/04/2016 5:09:46 AM PDT by P.O.E. (Pray for America)
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To: nopardons

“,,,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.


48 posted on 09/04/2016 5:12:02 AM PDT by PubliusMM (RKBA; a matter of fact, not opinion. 01-20-2017; I pray we make it that long.)
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To: nopardons

It may not only apply to money in banks. How would you like below zero rates on your retirement savings accounts?


49 posted on 09/04/2016 5:31:51 AM PDT by randita
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To: Ken H

Even the slightest rate hike balloons interest payments on the national debt.

Forget about anything substantial.


50 posted on 09/04/2016 5:34:04 AM PDT by randita
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To: Flick Lives

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.


51 posted on 09/04/2016 5:35:16 AM PDT by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: SaveFerris
Holy crap - Can you imagine the massive run on the banks the day they announce this is going to happen? They would have to institute a withdrawal limit the very moment they made this statement, because you, your friend and I are all going to fly down there and put our money into places they can't "tax" it.

Follow up comment self edited for all of the profanities hurled at the socialists...

52 posted on 09/04/2016 5:38:28 AM PDT by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: nopardons

Invest in ammo NOW


53 posted on 09/04/2016 5:44:01 AM PDT by DownInFlames
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To: LukeL

In theory, negative rates should encourage consumers and businesses to spend more freely and stimulate growth.


The theory just hasn’t been applied right yet...................


54 posted on 09/04/2016 5:45:33 AM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: Innovative
Doesn't negative interest rate means the dollar is getting stronger

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.

55 posted on 09/04/2016 5:46:02 AM PDT by grania
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To: ETL
Re NIRP: Does this mean you can actually make money when you borrow money from the government?

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!

56 posted on 09/04/2016 5:46:48 AM PDT by Pearls Before Swine
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To: nopardons

Yes, some things have gone down in price...long distance phone calls, for one and some electronic stuff like air conditioners.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

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.


57 posted on 09/04/2016 5:48:09 AM PDT by Graybeard58 (Bill and Hillary Clinton are the penicillin-resistant syphilis of our political system.)
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To: nopardons

There’s at least one picture around here somewhere.


58 posted on 09/04/2016 5:53:50 AM PDT by OKSooner (She was practiced at the art of deception, you could tell by her bloodstained hands.)
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To: Jimmy Valentine

There will be a run on bank deposits, more barter for services, and a general reduction in economic activity.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

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.


59 posted on 09/04/2016 6:00:26 AM PDT by Graybeard58 (Bill and Hillary Clinton are the penicillin-resistant syphilis of our political system.)
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To: shibumi

So with a “negative interest rate,” the bank pays ME $15.00 if my balance falls below $500.00?


60 posted on 09/04/2016 6:02:00 AM PDT by Larry Lucido
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