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
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
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.
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.
Re: Negative interest rates
Does this mean you can actually make money when you borrow money from the government?
Whose "theory" is this, anyway? Sure, if I, as a consumer, can get a lender to pay me to borrow money, I should jump at the deal. But what lender in their right mind is going to lend money on those terms? Conversely, why should I, as a consumer, deposit my money into a bank--effectively providing a loan to that bank--if I have to pay the bank to keep my money?
In the scientific world, we only call a set of ideas a "theory" if there is a substantial amount of empirically derived data on which to base the theory. I seriously doubt that there is much, if any, empirical data supporting the supposed economic benefits of negative interest rates. It's a shame that the use of the word "theory" to only designate sound and robust ideas has not spread out of the science world.
I don't know of any precedent for such sustained low rates. It's like we're being sucked into a black hole.
They have wanted for years to charge for ‘holding’ your money, as if they were not using it. This is the back door for that.
If banks will charge depositors a fee (negative interest) for letting the bank hold their money will the banks pay borrowers (negative interest) to borrow money?
Negative interest would mean the country has oficially become Bizarro World.
According to the Federal Reserve and our wonderful government inflation is caused by higher wages. If they deport all the illegals wages will go up. Problem solved.
NIRP is a government decree of simulated inflation. Your money buys less and less because there is less and less of it. It is a continual tax on wealth. Buy gold and silver.
Wonder if government then would give a tax deduction for negative interest paid? Bet not...
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.
When you’ve got negative “investment” (aka “throwing good money after bad”) in many government programs, you get negative returns.
Follow up comment self edited for all of the profanities hurled at the socialists...
At my bank, this means I have to pay them $100.00 if I fail to say hi when I walk in the door.