Have you heard of “negative interest rates”?
ZeroHedge: It’s become a phenomenon with economists and the media.
There’s a good chance you’ve read an article about it. We’ve covered it many times in the Dispatch.
I’m writing to tell you something about negative interest rates you haven’t heard. You certainly won’t hear about it in the mainstream press.
What’s coming at you is a historic event. It’s something our grandchildren will hear stories about…much like the Great Depression or the Cold War.
What’s coming could send the price of gold much higher in the coming years…and hand gold stock owners 500%+ gains.
If you know what’s coming, it could mean the difference between having lots of free cash in retirement or barely getting by.
To understand the gravity of this moment, let’s cover one of the most bizarre ideas in the world… MORE
“You can bet that Big Government types like Hillary Clinton and Donald Trump will do the same thing in a financial emergency.”
Trump?
“What is the evil of robbing a bank compared to the evil of founding one.”
I don’t recall who made that statement. It’s just a quote I learned from a friend 40 years ago.
“This thinking is very, very wrong. No matter what the government does, it can’t force you to spend money. It can’t force you to make investments if you don’t see good opportunities.”
That is a pulled quote from ZeroHedge and is absolute bullshit. Can’t force you to spend money? Think Obamacare. It can’t force you to make investments if you don’t see good opportunities? Think your tax dollars going to support companies like Solyndra.
Try explaining this phenomenon to a Sanders supporter …
it would be easier to explain air to a fish.
Here we go again. Whenever the left discovers something it becomes their new hobby horse and they ride after the windmill to slay it.
Negative interest rates have always existed.
Generally there is a threshold below which the rate of return is negative. Currently this affects only very small investments with most vehicles.
Low interest rates have already raised that threshold substantially.
It costs money to handle money. to store it, protect it, and account for it. When the return is less than the costs involved, fees are attached, creating a loss. That is a negative rate of return (interest rate).
Most people are familiar with negative rates of return, they may not be familiar with using the word “interest” when discussing it.
Actually this is a better situation than the alternative of inflation.
The burden of inflation is carried primarily by the lower 60% of the population as defined by wealth.
Across the board negative rates affect the poor not at all, and the middle class minimally. The wealthy, who generally know how to profit from inflation bear the brunt of it.
Also consider that this has come about due to corporations (think Google) and countries (think China) that are holding huge amounts of cash reserves rather than having the money invested in the economy or goods. This is really the only counter to that kind of destructive activity.
I just call it theft.
IF this comes to fruition, I believe I’ll “invest” my money in ammunition. At least this has the potential for appreciation in value and is useful as well.
Wow… “buy gold!”…what a novel idea coming from ZeroHedge.
In a cashless society, gold will be useless. Gold won’t be confiscated, but it will be illegal to use in dwindling private transactions.
Look for “eCash” to be the buzzword to give comfort to the shorn sheep. 🙁
generally, banks keep 10% of your cash as a reserve and loan out the other 90% – mortgages, business loans, home equity loans, car loans, etc.
now they’re going to charge us a “storage fee” for our money, 90% of which isnt even there and they’re reaping a profit off of it.
this will incentivize people to take their money out of banks and store it in their mattresses. It’s no wonder the leftwing fascists want to abolish the One Hundy bill – it aids their negative interest rate scheme.
It’s already happening. My business account a few years ago received interest. Then it gradually got reduced, to nothing. Now they are charging me fees. This will soon be happening to my personal account. You can take that to the bank. Ain’t socialism great?
(ZIRP) Zero Interest Rate Policy
(NIRP) Negative Interest Rate Policy.My understanding of NIRP
The Banks can and will charge you for your accounts.Might be prudent to pay attention. We have not heard much lately about MYRA.
Gov’t control of your 401ks.Stinks on Ice to me.
You know the Republic is well and truly dead when …