Posted on 06/07/2014 9:53:10 PM PDT by kingattax
When you combine ZIRP (zero interest rate policy) with lots of fees and inflation, you already have negative interest rates. I suppose making it explicit, so its obvious to all, is the next psychological step.
Boy, will this force people into riskier, (hopefully) higher yielding assets, and magnify the next market panic!
Oddball stole Kelly’s Heroes.
Savings banks have basically lost their reason to exist. Today they are little more than the “neutral” gear in a car. However, the risk inherent in savings banks just keeps growing.
Now, on their own, they can freeze your account for up to two weeks. The government can direct them to have a bank holiday. It also tracks the ebb and flow of your money, and can seize it any time it wants to. And it offers nothing in exchange for these impositions.
Critically, when your money is in the bank, it is no longer legal tender currency. You are dependent on their good graces to pay you back. And they are not even required to pay you back in currency, but can insist on electronic transfer only, possibly to someone else who can refuse to give you your money in currency.
Yep, it is time to invest in a safe.
LOL --over on this thread we were talking about the idea that neg rates would cause deflation!
OK so a lot of very smart people are saying interest affects inflation but imho it doesn't work that way. I'm seeing that charges for interest have to pay for inflation and the cost of money and the two don't always go together and often they go in opposite directions. Times like these when inflation's low and the economy's faltering, the fed typically keeps rates low to encourage econ growth. The thing is that historically, lowering the cost of money doesn't always help either.
The currency is being destroyed with Quanitative Easing... The only way to force people to put money into the economy is to punish them with taxation or... LOW INTEREST RATES.
Reading about “negative” interest rates is about the equivalent of someone talking about last night’s episode of “OW! MY BALLS!”... it’s not a premonition, it is here... now.
“Only if you are of college age.”
It always starts out small, then it grows. As a result everyone will have to fill out forms and eventually pay a fee to the government to have them recorded.
Rush says that too, and others (like these guys) say qe causes deflation. fwiw, qe is over and being shut down. We didn't hyperinflate all that much...
Yes he did.
Crazy...I mean like, so many positive waves...maybe we can't lose, you're on.
yep, been jumping up and down in puddles of dust. Ya caught me. Admiral Spock did try the worms but I digressed.
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