Japan Goes Negative – IOTW Report

Japan Goes Negative

In a move to jumpstart the nation’s economy and stock market, the Bank of Japan will charge retail banks for their deposits with the central bank. In essence, the Japanese are offering negative interest rates.

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12 Comments on Japan Goes Negative

  1. It is coming here too, I can’t predict when, but it will.

    The way our economy is setup, people have to be consuming. When people do not consume, the economy goes down, so we need to get people to spend. What’s the best way to get people to spend?

    Tell them the dollar in their pocket will be worth $0.97 if they don’t spend it.

  2. It’s here already. The dilution has taken place more stealth; remember there is no inflation. NONE. And the low oil prices? Bazillions of dollars right back in the consumer pockets even if there were inflation.

  3. Actually, what you are describing is inflation. Money in your pocket does not lose value with negative rates.
    Negative rates cause the opposite of more spending, especially in the business sector. That is why you see a lot of cash on the ledgers these days.
    What negative rates accomplish is hiding the consequences of wholesale printing of money that otherwise would bring about crippling inflation. It is not prudent to invest cash so massive amounts of it is being sidelined.
    The government controlled press is blaming the stock market fall that occurred right after a tiny rate increase on other things, but take not of the fact that they have loudly backed away from rate increases.
    If base rates were brought up near inflation (3-4%) the house of cards would fall within hours.

  4. What do I know? I listen to Mr. Yellen at the Fed and follow the consumer price index with detailed information from the bureau of labor statistics. They say 0.25% prime after years of ZIRP, fuck the consumer deposit and print QE-forever without their “target” 2-3% inflation. Of course I’m serious that these people are jackwads.

  5. it is easy to look up. last year food increases slowed to only a 2% increase after averaging close to 4 during the previous 5 years. housing last year was up about 5%, a little more than previous years. You can check. Every item, from food, to housing, to clothing, to energy (except gas recently) that one needs to survive has been inflating. I didn’t mention health care as everyone knows it dropped by $2500 per person when Obamacare kicked in, those double digit increases are a figment of your imagination.

  6. There is no faster way to destroy a fractional reserve banking system than for people to take money out of banks and stick it in the mattress because of negative interest rates. Consider it the banking systems’ margin call.

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