We are Entering a Monetary Black Hole that will Meltdown the Global Economy
The Nomad Economist: 8-14-2022
We are in the midst of a strange economic experiment; Negative Interest Rates. Negative interest rates mean that there is no saving only consumption.
The result is that we use up our planet, recklessly, at an ever-increasing rate. There is a NIL value placed on any resource. Immediate exploitation of everything pays. Lower interest rates will destroy savers, banks, and the economy in the medium to long term. And eventually, kill The US Dollar.
Two percent annual inflation theft rate wasn’t enough. Now they aim to skim an additional two percent via negative interest rates. Banker avarice knows no bounds. Negative rates. Just another way to scam American people.
The crooks will be the only ones knowing what is going on. Negative Rates equals Credit Freeze; Monetary Contraction; Economic Collapse; Depression; Currency Reset. Elites Own it All. END THE FED NOW .
President Donald Trump has suggested the Federal Reserve should bring interest rates below zero. Trump is a big fan of low-interest rates. In fact, he has called on the U.S. Federal Reserve to take rates into negative territory, just like Germany or Japan. In theory, the banks would pay you to borrow money. But savers would also have to pay a bank to keep their money there.
But what does that even mean? Will you be paid for taking out a loan? In September of 2019. US President Donald Trump posted a strange tweet that started with the following sentence: The Federal Reserve should get our interest rates down to zero or less, and we should Then begin to refinance our debt.
Trump even went so far as to praise Germany’s zero percent. Then he went even further on Twitter, referring to the Fed as “boneheads.” But what if Trump got what he wished for? What if interest rates were actually zero, or negative, like Sweden or Japan. What if instead of a bank paying you to hold your money, you theoretically had to pay the bank to keep it there. It could happen with negative interest rates.
So what exactly are negative interest rates? Interest rates are generally thought of as the cost of borrowing money. Central banks raise interest rates to cool off an economy that’s close to overheating.
Zero or negative interest rates, on the other hand, are seen as a way to stimulate an economy. In theory, negative rates force banks to lend more. But it doesn’t always work that way. Instead, negative rates can actually have the opposite effect. They can squeeze profits so much that financial institutions actually lend less. They can also have an impact on government funding.
For example, Germany’s economy is on the verge of a recession, so it lowered interest rates to -0.31 percent, which means investors could be charged for keeping their money in the bank. But the country still needs to fund the government.
So in August 2019, Germany attempted to sell 2 billion euros worth of 30-year bonds, which would mature in 2050, and they had a negative yield. As a result. Investors only bought 869 million euros worth with a yield of -0.11 percent. In other words, investors will, in theory, pay to have the German government hold their money.