Posted on 11/01/2014 2:24:54 PM PDT by aimhigh
Deutsche Skatbank, a division of VR-Bank Altenburger Land, which was founded in 1859, is not the biggest bank in Germany, but it’s the first bank to confirm what German savers have been dreading for a while: the wrath of Draghi.
Retail and business customers with over €500,000 on deposit as of November 1 will earn a “negative interest rate” of 0.25%. In less euphemistic terms, they have to pay 0.25% per annum to the bank for the privilege of handing the bank their hard-earned money or their business cash.
Inflation has had a similar effect in the zero-interest-rate environment that the ECB and other central banks have inflicted on savers, but this time it’s official, it’s open, it can’t be hidden. Instead of lending your moolah to the bank so that the bank can lend it out to businesses and retail customers for all sorts of economically beneficial purposes, you’re financially better off hiding it in the basement.
(Excerpt) Read more at wolfstreet.com ...
Is this just for demand accounts or does it apply to savings accounts also?
So then, do we get paid when we borrow?
Ich bin ein Bankleaver
I’m guessing we don’t.
I only joke about that as a possibility years ago.
Didn’t think it would actually happen.
Next up:
Huge deflation and erosion of monetary value.
LOL!
Stupid...
LOL...
I don’t know from Adam’s off ox about financial games, however, why should a company pay a fine for keeping their money in one specific bank?
For people who can't or don't keep a specified minimum balance, their fees amount to a negative interest rate.
Globally, banks are out of control. At what point does something give?
um.. wouldn’t deflation increase monetary value?
If you dollar buys more than it used to... that’s an increase to your money’s value.
there is nothing for ‘private money’ to do.
look around, how many more
empty buildings does your city need?
also applies around the world.
What you said.
“there is nothing for ‘private money’ to do.”
In a nutshell.
Come buy our dollars!
Gotta do something about those who are hoarding cash. Whenever I hear someone complain about corporations sitting on large amounts of cash, I ask them what they would suggest they do with it that could create a positive return? Crickets.
LOL!
“you’re financially better off hiding it in the basement.”
They are trying to force them to spend it.
Here in the US we are turning into India; over there, when people are paid, they pay all of their bills then sink the remainder into gold to protect its value against the inflation of the rupee. In different times Americans might sink it into investments like property, but today that would just give you an annual property tax bill to keep the government worker class funded...
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